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June 5, 2013  Wed 4:45 AM CT

TWC: SEE CHART GET CHAIN FIND STRATEGIES
As shares of Time Warner Cable attempt to hold above a key level, one trader is betting on a big rally in the next four months.

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.
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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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