One investor is turning time into money with RadNet.
optionMONSTER's monitoring programs detected a surge of activity in
the thinly traded medical-diagnostics company. It began with a
large block of September 2.50 calls being purchased for $0.40
against previous open interest and, seconds later, the December
2.50 calls were sold for $0.50. An even 4,322 contracts traded in
It appears that the investor had previously sold the September
options and is now rolling that short position forward in time. He
or she probably owns shares and is using the options as part of a
strategy. As a result of the transaction, the investor collected
$0.10 of income but while locking into the trade for an additional
three months. (See our Education Section.)
RDNT is up fracdtionally $2.86 in midday trading and has been
bouncing in a range for years. Its implied volatility is elevated
at more than 90 percent, which increases the appeal of selling
More than 8,600 contracts have traded in the name so far, compared
with an average of less than 20 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.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.