The bulls targeted Vodafone for the second session in a row yesterday.
optionMONSTER's Heat Seeker program detected unusual activity in the July 28 calls. More than 12,000 contracts traded against previous open interest of 1,746, indication new positioning, with most of the volume pricing for $0.50.
These long calls lock in the price where the shares can be bought. They can generate some nice leverage from a modest gain in the stock but also can expire worthless if it doesn't move. (See our Education section)
VOD fell 1.24 percent to close at $26.21 yesterday but climbed late in the session after the calls hit. On Monday , traders snapped up the February 27 calls, looking for a shorter-term pop in the global telecom carrier.
Shares rose in London yesterday after Verizon CEO Lowell McAdam told the Wall Street Journal that he might be interested in buying VOD's 45 percent stake in Verizon Wireless.
Total option volume was 10 times greater than average in the British company, with calls outnumbering puts by a bullish 5-to-1 ratio.
(A version of this post appeared on InsideOptions Pro yesterday.)
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.
