One investor is passing the time in Omega Healthcare as
investors worry about the budget standoff in Washington.
optionMONSTER's trade scanners detected the purchase of about 1,750
October 30 calls for $0.90 and the sale of an equal number of
November 30 calls for $1.10. Volume was below open interest in the
nearer-dated contracts, indicating that an existing short position
was closed and rolled forward in time.
The investor probably owns shares in the real-estate investment
trust and had sold the options as part of
. The adjustment allows the trader to collect an incremental $0.20
of income and stay in the trade for an additional month. It also
keeps him or her from being forced to exit the position at the end
of next week when the October contracts expire. (See our
OHI rose 0.39 percent to $30.52 yesterday. It rallied strongly
between November and May, fell through early September, and has
been working its way higher since.
The stock pays a dividend yield of 6 percent, which the investor
receives in addition to the premium collected from selling the
Total option volume was 10 times greater than average in the
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