Bally bet aims to turn time into money
David Russell | [email protected]
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.