One trader wants to turn time into money with American Axle
optionMONSTER's tracking systems detected the sale of 1,750
September 20 calls for $1.075 and the purchase of 1,000 August 19
calls for $1.375. Volume was below open interest in August, which
suggests that an existing position was closed, rolled forward in
time and increased in size.
The investor probably owns shares in the maker of automotive
drivetrain systems and sold the contracts as part of a
. Adjusting the position let him or her raise the price at which
they must divest stock, allowing them to extract more time value
from the options. (See our
AXL is up 0.65 percent to $20.27 in morning trading and has risen
81 percent so far this year. Most of those gains followed a strong
earnings report in early May and came at the same time that
sentiment brightened in the broader automotive space.
Today's trader boosted the number of contracts, yielding a credit
of $50,625. They also increased by 75 percent the number of shares
they must unload if AXL remains above $20 through September
Total option volume is triple the daily average so far in the
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