The bulls piled into the New York Times Company early yesterday, looking for the media stock to rally.
optionMONSTER's Heat Seeker tracking system detected activity in the October 9 and 10 calls. The 9s traded for $0.95, with more than 1,200 changing hands, while the 10s fetched $0.30. Volumes were well above the open interest in each strike, indicating new positions.
Those contracts lock in the price investors must pay for NYT stock and will generate some nice leverage in the event of a rally. But these options will lose value if the stock doesn't move. (See our Education section)
NYT rose 0.1 percent yesterday to close at $9.60. Early in the session, the company announced the planned sale of its remaining interest in job-search site Indeed.com, which is being acquired by Japan's executive-search firm Recruit for an undisclosed amount.
More than 2,400 calls traded against just 241 puts in the name, a reflection of the session's bullish sentiment.
(A version of this post appeared on InsideOptions Pro yesterday.)
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