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Trader gives Invesco room to keep climbing

Invesco keeps going up, and one investor wants to give it room to run.

optionMONSTER's tracking programs detected the sale of about 1,900 October 41 calls for $0.29. Roughly the same number of August 39 calls were bought at the same time for $0.09, but volume was below open interest in those. So it appears that an existing short position was closed, rolled out in time and up in price.

The investor probably owns the stock and had previously written the August 39s as part of a covered call . Adjusting to the 41s today let him or her collect an additional $0.20 of premium while also raising their eventual exit price by $2. It also committed them to the bet for an additional two months. (See our Education section.)

IVZ fell 1.43 percent to $38.70 in afternoon trading, but is up 12 percent in the last three months. The company runs exchange-traded funds and serves high-net-worth clients. It's been climbing on strong financial reports and today touched its highest level since May 2001.

Total option volume is 13 times greater than average so far in the session, with calls outnumbering puts by almost 400 to 1.

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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