News Corp. has been pushing higher, and one investor likes it
over the long haul.
optionMONSTER's monitoring systems detected the sale of 16,000
January 16 puts for $0.47. An equal number of July 18 puts was
bought at the same time for $0.07, but volume was below open
interest at that strike.
This suggests that the investor had previously sold the
shorter-dated contracts, looking for the media company to remain
above $18. Now that it's held that level, he or she closed the
position and is rolling it forward in time to collect an additional
credit of $0.40.
NWSA rose 1.19 percent to $20.48 yesterday. It's up 6 percent so
far this month and is back near the level where it peaked in May.
The company's earnings have been strong thanks to its movie studios
and cable business. Some investors may expect conditions to remain
positive as the 2012 presidential elections draw viewers to its
top-rated Fox News channel.
is a common way to profit from such an expectation because it
allows the investor to milk income from the passage of time.
Another result of yesterday's put roll is that the trader lowered
by $2 the strike price at which he or she will be forced to buy
shares in the event of a pullback. (See our
Overall option volume was 22 times greater than average in the
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