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Bulls tune into Discovery

The bulls are tuning into Discovery Communications.

optionMONSTER's Heat Seeker tracking program detected the purchase of 2,000 September 40 calls, most of which priced for $0.70, against open interest of 1,025 contracts. The trader is looking for the stock to make a quick push back above the $40 level that provided support several times earlier in the year.

DISCA rose 3.48 percent to $39.52 on Friday. It roughly quadrupled in value between October 2008 and late last year, but has been consolidating since then. The company has enjoyed strong profit growth amid strong demand for advertising, and beat expectations on the top and bottom lines the last time results came out on Aug. 4. Management also raised guidance.

DISCA's channels include Discovery Channel, Animal Planet and TLC.

Overall options volume in the name was 9 times greater than average, with calls accounting for 88 percent of the activity.

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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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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