Credit: Shutterstock photoSBA Communications reports earnings on Thursday, and the bulls are piling in early.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 6,000 August 110 calls this morning, most of which priced for $0.90. Volume was more than twice previous open interest at the strike, which indicates that new money was put to work.
These long calls lock in the price where investors can buy stock in the wireless-tower operator, providing the potential for significant leverage if shares move in the right direction. The cost of the options is a small fraction of the share price, which mitigates the risk of a drop. (See our Education section)
SBAC is off 0.03 percent to $104.51 in afternoon trading after hitting an all-time high of $106.04 earlier in the session. It's been steadily advancing since last summer amid strong demand for mobile communications and saw bullish activity earlier this month .
Total option volume is 10 times greater than average so far in the session, with calls outnumbering puts by 23 to 1.
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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.
