Markets

Large bull tunes into Dish Network

Dish Network has been faring better than most stocks in the last month, and one bull is looking for more strength.

optionMONSTER's Heat Seeker tracking system detected the purchase of 5,000 December 30 calls for $1.60 and the sale of an equal number of December 25 puts for $1.75. Volume was more than 5 times open interest in both strikes.

The trade produced a credit of $0.15 and has the potential to earn infinite profits if the satellite-television stock pushes above $30 by expiration. It also stands to lose money below $25.

DISH is down 0.99 percent to $26.96 in afternoon trading but is up 24 percent in the last month. It fell hard like most stocks in early August but, unlike the S&P 500, it is now back above its 50-day moving average. That could lead some chart watchers to believe that it isn't entering a downtrend and could continue higher.

The bullish trading has occurred despite earnings missing estimates the last time it reported earnings on Aug. 9 as customers defected to cable television.

Today's option activity occurred around the same time that some large blocks changed hands against open interest in the December 24 puts and the December 28 calls. That suggests that an existing bullish position was adjusted and increased in size.

Overall option volume in DISH is 8 times greater than average so far today.

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.

In This Story

DISH

Other Topics

Options

Latest Markets Videos