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Markets

Bulls are beaming into Dish Network

One investor apparently believes that Dish Network is ready to take off.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,300 March 29 calls for $1.23 and the sale of an equal number of March 22 puts for $0.68. Volume was above open interest in both strikes.

The trade resulted in a cost of $0.55 and is similar to owning shares in the satellite-television company, profiting to the upside and losing money to the downside. The main difference is that it will track movements in the stock less closely as time passes and will be worthless if DISH remains between $22 and $29 on expiration. (See our Education section)

Shares are up 0.55 percent to $26.33 in morning trading and has been grinding higher since the market crashed in August. It's attempting to push through its 200-day moving average, and some chart watchers may consider it a bullish sign if it breaks that level.

The bullish combination trade pushed overall option volume in DISH to more than twice the average amount, according to the Heat Seeker.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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