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November 27, 2012  Tue 12:21 PM CT

DTV: SEE CHART GET CHAIN FIND STRATEGIES
Shares of DirecTV are bouncing, but one large trade sees limited upside for the satellite-television operator.

optionMONSTER's tracking systems detected the sale of 10,000 March 52.50 calls for $0.99, well below the listed bid price at the time. Open interest in the strike at the start of the session was just 617 options, so this is a new opening position.

DTV is up 0.65 percent to $49.32 this afternoon, making up for yesterday's losses. Shares bounced off support at $48 two weeks ago but remain in a downtrend from its 52-week closing high just above $54 in mid-September.

Today's call selling is based on the thesis that DTV won't be much above $52.50 at the time of that expiration. The trader is also be betting that the implied volatility of those options is too high.

The calls may have been sold naked with an initial bearish bias, or they could have been traded against long shares in a covered call position. The latter would be bullish up to the $52.50 strike price but not beyond. (See our Education section)
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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