Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 28, 2013  Fri 5:16 AM CT

TMUS: SEE CHART GET CHAIN FIND STRATEGIES
The bulls loved T-Mobile earlier in the month, and they're looking for the gains to keep on coming.

Traders snapped up the August 24 calls for $1.05 on June 14. Yesterday they sold those contracts for $1.52 and rolled up to the August 26s for $0.86, with about 11,000 contracts traded at each strike, according to optionMONSTER's Heat Seeker tracking system.

Long calls lock in the price where the stock can be purchased no matter how far it might rise. They give investors cheap exposure to gains in the shares and can generate some nice leverage in a rally. (See our Education section)

TMUS has been running like a horse since March and rose another 3.85 percent yesterday to close at  $24.55. The call roll allowed the trader to take some money off the table while staying in the game for more upside.

Total option volume was 5 times greater than average. Almost 33,000 calls traded in the name versus barely 700 puts, a reflection of the session's bullish sentiment.
 
Disclosure: I own TMUS calls.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

TMUS

T-Mobile viewed on solid ground

September 26, 2014

The wireless carrier has been viewed as a takeover target, having been courted by Sprint earlier this year. Its last earnings report in July also beat expectations.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER