One investor likes the recent pullback in MicroStrategy.
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 2,000 October 135 calls for $9.10 and the sale of an equal
number of October 105 puts for $7. Volume was more than twice open
interest at both strikes.
The trader paid $2.10 to open the position and will
make money on the calls
if the software maker rallies. He or she will also profit from the
puts sold short
losing value, which makes the trade similar to owning shares. The
main difference is that the option strategy will track the stock
less closely as
and expire worthless if it stays between $105 and $135.
MSTR rose 0.16 percent to $122.16 on Friday. It gapped higher after
a strong earnings report early last month before skidding lower
along with the rest of the market. Some investors may expect the
shares to climb in coming weeks as traders price in another strong
set of numbers this summer.
The release date for second-quarter report hasn't been announced,
but last year it came out on Aug. 2.
Overall option volume was 16 times greater than average in Friday's