J2 Global is grinding higher, and one investor is using options
to manage a position in the stock.
Our tracking systems detected the sale of 1,958 September 30 calls
yesterday for an average premium of $2.48. An equal number of March
25 calls were also bought for $5.21, but volume was below open
interest in that strike.
The activity appears to be the work of an investor who owns shares
in the company, which provides services such as online faxes and
voicemail accounts. Selling calls has let him or her
and reduce the
of the position.
Yesterday's trade increased by $5 the level at which the trader
will sell the shares. In return, the investor paid $2.73 and agreed
to stay in the name for an additional six months. The strategy
works because of the greater time value in the longer-dated
September contacts. (See our
JCOM rose 0.03 percent to $30.22 yesterday and has spent most of
the last year trapped between $26 and $30. It's been making
incrementally higher lows since October, which could make some
chart watchers think the stock is in an uptrend--even if it's very
Overall option volume was 24 times greater than average
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