Virgin Media gets vote of confidence

By David Russell,

Shutterstock photo

Virgin Media has been consolidating in a range since October, and one investor apparently thinks that it will hold its ground or push higher.

VMED Chart optionMONSTER's tracking systems detected the sale of 3,500 September 17.50 puts on VMED, which provides television, wireless, and broadband services in the United Kingdom. The transaction priced for $1.35 and accounted for almost all the options activity in the stock so far today.

VMED fell 0.34 percent to $17.44 in afternoon trading. It's been fighting resistance around this level while making incrementally higher lows in February and May, suggesting that a bullish uptrend remains intact.

The company said on April 28 that operating earnings rose more than 400 percent amid a big gain in both television customers and revenue per user.

Today's put seller is looking for the shares to hold their current levels or push higher. Given the credit earned, the position will make money as long as VMED closes at or above $16.15 on expiration.

Overall options volume in the name is more than triple the average level so far today.

(Chart courtesy of tradeMONSTER)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Options
Referenced Stocks: VMED

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