Time Warner Cable has never traded above $85, and one investor
is targeting that level to write calls today.
optionMONSTER's monitoring systems detected the sale of more than
8,100 August 85 calls, most of which priced for $0.90. Volume was
almost quadruple previous open interest at the strike.
TWC fell 1.73 percent to $82.34 in afternoon trading. The cable
giant's shares are up more than 300 percent since March 2009 but
have been churning in their current range since February.
By selling calls, today's trader is expressing a belief the stock
will remain below $85 through expiration. He or she is probably a
long-term investor who would be willing to exit the position if
TWCI goes to that level. Including the credit earned, their exit
price would be $85.90.
Overall option volume is 6 times greater than average in the
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