Time Warner has been powering higher, and the bulls are still
optionMONSTER's Heat Seeker tracking program detected the purchase
of more than 11,000 April 55 calls against open interest of just
2,309 contracts. Most of the volume priced for $1.04 and $1.05.
lock in the price
where investors can buy shares. They'll roughly triple in value in
the event that TWX climbs just 8 percent to $58 but will become
worthless if it doesn't move. (See our
section for more on how options can be used to generate leverage.)
TWX is trading at $53.60 this afternoon, up 1.42 percent on the day
and 26 percent in the last six months, more than 3 times the
performance of the S&P 500 in that period. There have been
reports the media company may divest its Time Inc. magazine unit.
the Heat Seeker also showed unusual buying in the March 55 calls
and the February 55 calls. Those March contracts have almost
doubled from $0.30 to $0.55 following today's move.
Total option volume in TWX is already 4 times greater than its
full-session average. Calls outnumber puts by more than 6 to 1.
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