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August 21, 2013  Wed 4:45 AM CT

BEAM: SEE CHART GET CHAIN FIND STRATEGIES
Traders are looking for Beam to reverse its recent losing streak.

optionMONSTER's Heat Seeker system detected the purchase of 1,800 December 67.50 calls, led by a print of 1,500 that went for $1.75. Open interest in the strike was just 172 contracts before the trades appeared, showing that these are new positions.

These long calls lock in the price where traders can buy the stock through mid-December no matter how far it might rise. They could be sold earlier at a profit if premiums gain with a rally before then, but the contracts could expire worthless if  BEAM remains below $67.50 in that time. (See our Education section)

BEAM rose 1.38 percent to close the session at $62.52, just above its 200-day moving average. The liquor company beat earnings and revenue forecasts on Aug. 8 but then fell sharply in subsequent sessions before bouncing at a four-month support level yesterday.

Total option volume in the name was just shy of 6,000 contracts yesterday, 10 times its daily average for the last month. Only 301 puts changed hands, a further indication of the session's bullish sentiment.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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