American Tower has been unstoppable for the last year, and option traders are betting that it will keep running.
optionMONSTER's tracking systems detected the purchase of more than 2,100 May 67.50 calls yesterday against open interest of just 693 contracts. Most of the options priced for $0.50.
Long calls lock in the price investors must pay to buy shares, so they can generate significant leverage in the event of a rally. But they can expire worthless if the stock fails to move quickly. The May calls, for instance, are good only until the end of this week. (See our Education section)
AMT rose 0.85 percent to $67.77 and is up 28 percent in the last year. The owner of mobile-communications towers, along with its competitors, has outperformed the S&P 500 in the last year amid strong demand for wireless connections. (See researchLAB for more)
Overall option volume in AMT was triple the daily average in yesterday's session, with calls outnumbering puts by almost 10 to 1.
(A version of this post appeared on InsideOptions Pro yesterday.)
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