News Corp. is falling along with the rest of the market before
its earnings report today, but options traders are getting long.
optionMONSTER's Heat Seeker tracking system detected multiple
bullish trades on the media conglomerate, all of which included
selling the July 14 puts. In one transaction, 5,000 puts were sold
for $0.35 and a matching number of June 16 calls were bought for
$0.60. The trade cost $0.25 and will simulate owning the stock.
NWSA is down 4.18 percent to $15.37 in afternoon trading but is up
18 percent in the last three months. The shares gapped higher after
its last earnings report on Feb. 3, when the company said the
advertising market was improving and raised its full-year guidance.
Its will report its next results after the market closes today.
The shares spent the December-March period breaking through the
$14.30 level where they consolidated in before the 2008 market
crash. Some chart watchers may now expect that price range to serve
as support, which would make them more comfortable selling the July
In another trade, an investor sold 1,500 July 14 puts and purchased
1,500 July 16 calls for a net cost of $0.38. The company, which
reports earnings after the bell today, saw bullish activity similar
to today's on April 27.
Overall options volume in NWSA is 13 times greater than average so
(Chart courtesy of tradeMONSTER)
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