Market News

June 7, 2012  Thu 11:54 AM CT

One investor is turning time into money with Bally Technologies.

optionMONSTER's tracking systems detected the sale of 6,154 January 50 calls for $2.30 and the purchase of an equal number of July 50 calls for $0.50. Volume was below open interest in the Julys, indicating that an existing short position was closed and rolled forward in time.

The investor probably owns shares in the casino-game company and previously sold the July calls against them to earn income. Adjusting the position today lets him or her collect an additional $1.80 of premium and keep the trade open for an additional six months.

BYI is down 0.26 percent to $45.76 in early afternoon trading. It almost doubled between October and late April but has been stalling since then. The shares peaked around $50 in December 2008, and the call seller apparently thinks that level will continue to be resistance.

If BYI closes above $50 on expiration, he or she will have to exit their position for that price. (See our Education section)

Overall option volume is more than 60 times greater than average so far today.
News Archives


The fastest money in the market VIEW FULL REPORT

Education & Strategy

Using puts to BUY stock

Puts are an options contract that gives buyers the right to sell their stock for a set price on or before a future date. However, puts can also be an effective way to BUY stock.

More education articles »