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Adjusting a position in Dominion

By: optionMONSTER
Posted: 1/10/2014 11:06:00 AM
Referenced Stocks: D

Dominion Resources got a pop along with other utilities today, and one investor is adjusting a position.

optionMONSTER's tracking systems detected the purchase of 1,940 January 62.50 calls for $4.70 and the sale of an equal number of April 72.50 calls for $0.40. Volume was below previous open interest in the January contracts, so it appears than an existing position was closed and rolled forward.

The investor probably owns shares in the Virginia utility company and had sold the 62.50s as part of a covered-call strategy . The trader then bought those back those calls and rolled the position to the 72.50s, raising by $10 the price at which he or she must exit the name. Rolling the position cost $4.30 and keeps the investor in the trade for an additional three months. (See our Education section)

D is up 1.38 percent to $67.24 in morning trading. It's up 29 percent in the last year, making it one of the few utilities to keep pace with the S&P 500 during that period. (See our researchLAB market scanner to analyze the price performance of companies and groups over different periods.)

Total option volume is 7 times greater than average so far in the session.