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August 3, 2012  Fri 11:40 AM CT

VOD: SEE CHART GET CHAIN FIND STRATEGIES
Vodafone has been ripping higher, and investors are looking for the upside to continue.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 30,000 October 32 calls for $0.20 and the sale of an equal number of October 30 calls for $0.80. Volume was below open interest in the 30s, which indicates that an existing position was closed and rolled to the higher strike.

The investor collected a credit of $0.60 and remains exposed to upside in the global telecom giant. (See our Education section)

VOD is up 1.5 percent to $29.68 in afternoon trading. The stock is up 5 percent in the last month and is now flirting with levels last seen in early 2011.

A similar trade also occurred in the September 29 calls and the October 31 calls. The 29s were sold for $1.15 and the 31s were bought for $0.40. This time, they collected $0.75 and have an additional month of upside exposure.

In both cases, it appears the investor was taking some profits from a winning trade but wants to remain long in case further gains occur.

Overall option volume in VOD is 9 times greater than average, with calls outnumbering puts by more than 200 to 1.
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Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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