One investor apparently thinks there's no going back for Virgin
Media as the stock hits new highs.
optionMONSTER's tracking programs detected the sale of 2,600 June
32 puts for $1.60 and $1.65 against no previous open interest. The
transaction accounted for more than one-third of the volume in
The investor is now obligated to buy shares in the British
cable-television company if they fall below the $32 strike price in
the next eight months. If they remain above it, he or she will keep
the premium as the puts expire worthless.
The put selling is also bullish because it reflects a belief that
downside is limited, but it's less directional than call buying.
Last week some investors bought the
March 37 calls
looking for a breakout. Yesterday's rally boosted the value of
those contracts by about 70 percent.
VMED rose 3.83 percent to $34.13 yesterday. It paused at its
previous highs from last year but pushed through that resistance
after reporting a surge in customer additions. Management
attributed the news to a successful advertising campaign and said
that fewer subscribers were abandoning service.
More than 7,300 option contracts traded in VMED yesterday, more
than triple the daily average.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.