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


Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »