Virgin Media is stuck between two levels, and one trader
apparently thinks that it will remain trapped in that range.
optionMONSTER's tracking systems detected the sale of 5,000 March
24 puts for $0.26 and 5,000 March 25 calls for $0.52. Known as a
short strangle, the trade resulted in a credit of $0.78.
The investor is betting that the entertainment and communications
company will remain between $14 and $15 for the next 2-1/2 weeks.
The trader has leeway down to $23.22 and up to $25.78 before losing
VMED fell 0.28 percent to $25.07 yesterday. It leapt after its last
earnings report beat estimates on Feb. 8 but has drifted lower
since then. Shares have remained above their 100-day moving average
but failed to break through resistance at their falling 200-day
Some chart watchers may now expect the stock to remain between
those two levels.
are a common way to profit from such a pattern. (See our
Overall option volume was 22 times greater than average in the
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