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• SPX, NDX continue to march higher
• Pending home sales only report today
• Huge put spread in Europe-Asia ETF

• JCOM 100% Rate It

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 generate income and reduce the volatility 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 Education section)

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 gradual.

Overall option volume was 24 times greater than average yesterday.

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