Options Trading News

September 15, 2016  Thu 12:26 PM CT


At least one trader is looking for gains in Viacom by the end of tomorrow's session.

optionMONSTER's monitoring program shows that 3,000 September 38 calls were purchased in one print for $0.55 today. This is clearly a new position, as open interest in the strike was only 125 contracts before the trade occurred.

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 is off 1.42 percent to $36.91 in afternoon trading and is down 13 percent in the last month. The media company reported bullish results on Aug. 4 and is expected to announce its next quarterly results in pre-market hours on Nov. 10.

Overall option volume in the name is twice its daily average so far today. Calls outnumber puts by a narrow margin.

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