SBA Communications has fought its way back to a key resistance
level, and at least one investor is throwing in the towel.
optionMONSTER's tracking programs detected heavy selling of the
August 35 calls, which traded more than 4,400 times against open
interest of 1,653 contracts. Most of the large transactions priced
for $1.50 to $2.05.
SBAC fell 3.01 percent to $36.03 yesterday after reporting
second-quarter estimates Monday that roughly matched analysts'
forecasts. Revenue guidance for the third quarter was slightly
The stock had touched two-year high of $37.23 immediately before
the release on Monday. The shares are challenging an area that has
provided resistance since late 2007, which could cause some traders
to expect an extended period of consolidation before SBAC pushes
Yesterday's call selling allowed the trader to collect income from
that pattern. The strategy is a way that long-term shareholders can
make money to reduce their cost basis in a stock. And, if SBAC
closes below $35 on expiration, they get to keep the shares and the
Last month an investor purchased calls and puts on the stock,
looking to profit from a big move before September expiration. That
position remained open through yesterday.
Overall options volume in SBAC was 7 times greater than average in
(Chart courtesy of tradeMONSTER)
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