One investor wants to turn time into money with Sony.
optionMONSTER's tracking systems detected the sale of about 3,400
April 21 calls for $1.95 and the purchase of a similar number of
October 19 calls for $1.75. Volume was below open interest in the
19s, which suggests that an existing short position was closed and
rolled to the 21s.
The trader probably owns shares in the Japanese electronics company
and had sold the options as part of a
. Adjusting the trade yesterday lets the investor collect an
additional $0.20 of income while also raising by $2 the price at
which the stock must be sold. (See our
section for more on how to make money even when your picks don't go
SNE fell 1.08 percent to $20.16. The name
lit up our scanners
as a buy in December, proceeded to more than double by May, and has
been consolidating since. Based on yesterday's option action,
investors apparently think that it will slowly grind higher and are
willing to hold it over the long term.
The company has also attracted interest from activist investor Dan
Loeb, who wants it to spin off its movie studio, and benefited from
a weak yen earlier this year.
Some 9,400 Sony options changed hands yesterday, compared with
fewer than 2,500 in a typical session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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