Options Trading 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.
Share this article with your friends


Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »