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September 20, 2016  Tue 8:02 AM CT

VIAB: SEE CHART GET CHAIN FIND STRATEGIES

Traders were snapping up calls in Viacom yesterday for the second time in three sessions.

optionMONSTER's monitoring program shows that about 2,500 December 40 calls were purchased for $1.50 to $1.65 yesterday. Volume surpassed open interest of 1,331 contracts, indicating that new positions were established, and follows September call buying last Thursday.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

VIAB fell 0.62 percent to $36.77 yesterday and is down 17 percent in the last three months. The media company reported bullish results on Aug. 4 and is expected to announce its next earnings numbers on Nov. 10.

Overall option volume was about average in VIAB yesterday, but calls outnumbered puts by a bullish 5-to-1 ratio.

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