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July 31, 2013  Wed 10:52 AM CT

NIHD: SEE CHART GET CHAIN FIND STRATEGIES
Traders are turning bullish on NII Holdings ahead of the wireless carrier's earnings report tomorrow morning.

More than 2,300 September 9 calls were purchased for $0.35 today, according to optionMONSTER's Heat Seeker tracking system. The volume was more than double the previous open interest in the strike, indicating that this is fresh buying.

These long calls lock in a $9 purchase price for the stock no matter how far it might rise. But they will expire worthless if NIHD remains below that strike price through mid-September. (See our Education section)

NIHD is down 1.52 percent to $7.12 in midday trading, just below its 50-day moving average. The heavily shorted company, which provides mobile telecom service in Latin America, hit resistance around the $8 level earlier this month and has been falling in the last week. It last traded above $9 in early May.

Total option volume in the name is nearly triple its daily average already today. Overall calls outnumber puts by more than 41 to 1.
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