Big call buyer stays tuned to DirecTV
David Russell | firstname.lastname@example.org
optionMONSTER's Heat Seeker tracking system detected the purchase of about 15,000 March 45 calls for $0.93 to $0.97. More than 7.521 February 45 calls were sold at the same time for $0.07, but volume was below existing open interest.
It appears that the investor previously owned the February contracts, looking for upside in the satellite-television company. With expiration looming at the close on Friday, he or she apparently rolled the position forward by one month. The trade was also doubled, reflecting a strong belief that the stock will push higher in the next four weeks.
DTV fell 0.88 percent to $44.98 and has been trapped in a range ever since the market crashed over the summer. DirecTV attempted to rally on Thursday after announcing a mixed quarterly results and a $6 million stock buyback, but sellers quickly hammered shares back below their 200-day moving average.
Earnings and revenue beat expectations, but the market focused on mounting competition in the U.S. despite rapid growth in Latin America. (See researchLAB for more)
Based on Friday's activity, at least one big investor thinks the bulls will soon gain the upper hand. Overall option volume in the name was 7 times greater than average, with calls outnumbering puts by more than 3 to 1.