Liberty Global is running, and one trader is loosening up the
optionMONSTER's tracking systems detected the purchase of 7,000
October 32.50 calls for $1.05 against existing open interest. At
the same time, a new block of 7,000 January 34 calls was sold for
The trade was probably the work of an investor who owns the shares,
and it can profit in two ways. First, the trader gets to keep the
$0.15 difference between the two premiums.
Secondly, the investor will receive an additional $1.50 on the
shares if LBTYA closes at or above $34 on Jan. 21. In return for
the additional money, the trader must assume the risk of owning the
stock for three months longer.
LBTYA rose 3.02 percent to $33.48 on Friday and is up 13 percent in
the last month. The provider of Internet service in Europe, Japan,
and Chile has been climbing on strong subscriber growth rates as
international stocks regain favor among investors.
The gains have come despite revenue missing forecasts the last time
it reported results on Aug. 3 and its loss coming in wider than
Total options volume in LBTYA was 24 times greater than average in
(Chart courtesy of tradeMONSTER)