Virgin Media traders take money off table

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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 bundled services.

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 Education section)



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This article appears in: Investing , Options

Referenced Stocks: VMED

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