Investors think there is no going back for SBA Communications.
optionMONSTER's monitoring systems detected the sale of 10,000
March 50 puts for $0.80. Volume was more than 15 times previous
open interest at the strike.
The investor is now obligated to buy shares in the owner of
wireless-communications towers for $50 if they close below that
level on expiration. If they remain above it, he or she will keep
the premium and the options will expire worthless.
is a common strategy when traders like a company because it lets
them get long on a pullback, but they also don't have to expend
capital buying shares right away. See our
for more ideas on how to make money from the passage of time.
SBAC rose 0.43 percent to $60.21 in early afternoon trading and
is up more than 60 percent in the last year. The
stock and its peers
has been melting steadily higher as investors flock to low-risk
It also had resistance around $50 in March and bounced at that
level in May, which could help explain why puts were sold at that
Overall option volume in the name is 16 times greater than
average so far today.
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.
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