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• Largest option buying in equities so far
• Largest option buying in equities so far
• Live Nation gets vote of confidence

• LYV 0% Rate It

Live Nation Entertainment is consolidating after a rally late last year, and one investor wants front-row seats for the next move.

optionMONSTER's Heat Seeker tracking system detected a bullish three-way trade in the company, which promotes rock concerts and operates venues such as the Fillmore theater in San Francisco. The investor bought 2,000 July 12.50 calls for $1 and sold 2,000 each of the July 10 puts for $0.80 and the July 15 calls for $0.25.

LYV fell 0.44 percent to $11.21 yesterday. The stock surged about 20 percent in November and December and now are now attempting to stay above their 200-day moving average (purple line on chart). Those gains came despite the company missing analysts' forecasts the last time it reported earnings on Nov. 4.

The option trade is highly leveraged to further upside in the shares. Because the investor received a net credit of $0.05, he or she stands to make infinite profits if LYV rallies above $12.50. The maximum gain will be $2.50 if it closes at or above $15. They will lose money if the stock falls below $10.

They may feel comfortable expecting support at $10 because that's where the shares spent two months consolidating before the recent rally.

The trade pushed total options volume in LYV to 40 times greater than average.

(Chart courtesy of tradeMONSTER)

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