OptionsHouse

Options Trading News

October 18, 2013  Fri 12:20 PM CT

TMUS: SEE CHART GET CHAIN FIND STRATEGIES
One investor thinks that T-Mobile US will continue its winning ways.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 9,000 November 28 calls for $1.14 and the sale of 6,000 November  26 calls for $2.175. Volume was below open interest at the lower strike, which indicates that an existing position was closed and rolled up.

The investor collected a credit of $279,000 and remains exposed to further upside in the wireless communications name. He or she also increased the number of contracts owned, which will provide them with even more leverage if shares continue to advance. (See our Education section for how to manage trades more effectively with options.)

TMUS is up 1.6 percent to $27.88 in afternoon trading and has roughly doubled in the last year. Formerly known as MetroPCS Communications, the company drew repeatedly bullish activity in March and April before running higher. It then consolidated before working its way higher in the last two months.

Total option volume is 6 times greater than average so far in the session, according to Heat Seeker. Calls outnumber puts by more than 100 to 1.

Share this article with your friends


OptionsHouse

Premium Services

Upcoming Webinar:

How to Defend Your Portfolio and Profit in a Market Selloff

http://bit.ly/1OSMWU6

Jon Najarian and Sandy Chaikin of Chaikin Analytics demonstrate how to play defense when the market is selling off. And, how to turn misery into money, whether investing in stocks or trading options.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »