The bulls are tuned into Cablevision yesterday in hopes of another big move.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 6,300 October 30 calls for $1.35. Some 8,384 September 28 calls were sold minutes later for $0.90 in volume below open interest of 21,663 contracts. This suggests that an existing bullish position was rolled from forward in time and higher in strike.
Long calls track movements in a stock's price because they lock in the level where it can be bought. They're popular because they help manage risk and because capital can be moved between contracts. Yesterday's adjustment cost about $96,000 and kept investor in the trade for an additional month. (See our Education section)
CVC rose 2.74 percent to $27.29 after Citigroup poured cold water on the idea it might be acquired by France's Altice. Shares are already up more than 8 percent this month on takeover speculation and as bears covered short bets against the cable-television stock.
Another benefit of options is that their cheap cost can result in significant leverage on a percentage basis. For instance, our premium subscribers were alerted to unusual activity in the September 27s last week and quickly doubled their money.
Total option volume was triple the daily average yesterday, with calls outnumbering puts by a bullish 70-to-1 ratio.
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