Virgin Media has been rallying since its last earnings report,
and investors are taking some money off the table.
optionMONSTER's tracking systems detected the sale of more than
16,000 September 34 calls for $1.05 and $1.10 against open interest
of just 82 contracts. The activity pushed total options volume in
the U.K. broadband company to 33 times greater than average.
VMED is up 3.77 percent to $32.18 in midday trading. Its results on
April 20 were in line with forecasts, but investors seized on a
trend of strong business demand and more customers subscribing to
The shares popped on the news and spent the next two weeks grinding
higher against its previous highs from 2006. Despite hitting a new
all-time high today, some traders may not be convinced that it's
broken resistance, which would explain options activity.
The trades obligate investors to sell VMED shares for $34 if they
go above that level by expiration. Including the credit received,
that translates into an exit price of $35.05 to $35.10. (See our
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