Pullback attracts bulls to Crown Castle
David Russell | [email protected]
optionMONSTER's Heat Seeker monitoring program detected the purchase of about 3,700 March 70 calls in volume that was more than 3 times higher than the strike's previous open interest of just 1,091 contracts, indicating new positioning. Most of activity occurred halfway through Friday's session for $0.65 to $0.90, with premiums rising as the trades crossed. Later in the afternoon, they would fetch as much as $1.15.
Those long calls lock it the price where investors can buy shares in the company, which owns wireless-communications towers. CCI, along with American Tower and SBA Communications, rallied in 2012 amid plans to become tax-free real-estate investment trusts but have been falling more recently. (See our propriety researchLAB tool for more on how the companies stack up against more than 100 other industry groups in the market.)
CCI rose 1.86 percent to $67.90 on Friday but is down 6 percent so far this year. The shares are back around a level where they consolidated in the fourth quarter, which could be leading some chart watchers to believe that it's worth taking a shot now.
Total option volume was 13 times greater than average, according to the Heat Seeker, with calls accounting for a bullish 87 percent of the activity.