Time Warner Cable gets bullish bet
Mike Yamamoto | [email protected]
optionMONSTER's Heat Seeker system detected the purchase of 4,854 October 115 calls in a single print for $0.43 yesterday. The volume was well above the strike's open interest of 2,854 contracts before the trade appeared, showing that this is a new position.
These long calls, which lock in the price where traders can buy the stock, are looking for TWC to rally above $115.43--more than 21 percent higher than yesterday's close. But if it remains below the $115 strike price through mid-October, the contracts will expire worthless. (See our Education section)
TWC rose 0.06 percent yesterday to finish at $95.23 after dipping below its 200-day moving average briefly intraday for the second session in a row. Shares of the cable operator have been bouncing in a wide range since last November, between about $85 and $101.
Total option volume in the name topped 6,100 contracts in the session, more than 7 times its daily average for the last month. Calls outnumbered puts by 11 to 1, a reflection of the day's bullish sentiment.