One big investor thinks America Movil isn't done moving.
optionMONSTER's Heat Seeker tracking system detected the purchase
of 1,500 August 25 calls for $1.42. An equal number of August 23
calls were sold at the same time for $2.67, but volume was below
That suggests the investor previously owned the 23s and rolled
their position to the higher strike. He or she collected a credit
of $1.25 and remains long the Mexican wireless stock. They
probably bought the calls when the shares were lower and are now
taking profits. (See our
section for more on how positions can be adjusted over time to
AMX rose 0.57 percent to $24.83 on Friday and is up 10 percent in
the last three months. The company is one of the largest in
Mexico, a country that has quietly outperformed the S&P 500
and emerging markets for the last five years.
AMX lagged for most of that time but is now back above its
200-day moving average. That could make some chart watchers think
that it's finally regaining momentum. If they're right, owning
calls will allow them to leverage the move.
Overall option volume was 5 times greater than average in the
session, with calls outnumbering puts by 3 to 1, according to the
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.