One investor apparently believes that there's more money to be
made in CBOE Holdings.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 4,000 June 37.25 calls for $0.65 and the sale of an equal number
of June 34.25 calls for $2.05. Volume was below the previous open
interest in the 34.25 strike, indicating that an existing position
was rolled forward in time.
The investor seems to be adjusting a winning trade. He or she
collected a credit of $1.40, representing most of the capital at
risk, and now stands to make further profits if the shares continue
to rally. (See our
section for more on how options can be used to manage trades.)
CBOE rose 2 percent to $35.69 yesterday and is up 21 percent so far
this year. In contrast, the S&P 500 is up just 7 percent and
the broader financial sector has gained 9 percent.
The company, which is the parent of the Chicago Board Options
Exchange, has reported earnings above analysts' estimates for at
least the last four quarters. It's been trading at new all-time
highs for the last week.
Total option volume was 6 times greater than average in the
session, according to the Heat Seeker. Calls outnumbered puts by a
bullish 10-to-1 ratio.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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