Nasdaq OMX Group has peaked around $29 twice so far this year,
and a leveraged trade is looking for a break above that level by
optionMONSTER's Heat Seeker tracking system detected the purchase
of 2,500 September 29 calls for $1.40 and the sale of an equal
number of September 25 puts for $1.30. Volume was more than twice
open interest in both strikes.
The trade cost just $0.10 and will simulate owning shares in the
company, which operates financial exchanges such as the Nasdaq
Stock Market and the bourses of Finland and Sweden. It will track
NDAQ less slowly as time passes and expire worthless if the stock
is between $25 and $29 on expiration. The real money will be made
from a break above resistance at $29, and losses will occur toward
or below $25.
It rose 2.93 percent to $27.37 yesterday and is up 15 percent so
far this year. The stock has been steadily trending higher,
following its 100-day moving average upward. NDAQ's last earnings
report on April 20 matched estimates on the bottom line and
exceeded consensus on revenue, though attention has mostly focused
on the company's efforts to purchase NYSE Euronext.
Yesterday's bullish trade pushed total options volume in NDAQ to 11
times greater than average, according to the Heat Seeker.
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