Options Trading News

December 7, 2012  Fri 9:34 AM CT

A large trader is sees limited upside in TripAdvisor, which is hitting four-month highs.

optionMONSTER's systems show that 5,000 January 41 calls have traded against open interest of 1,146 this morning. The big block of 4,200 was sold for the bid price of $1.

The calls weren't traded against any stock today so far as we can tell, so it could be outright selling with an initial bearish bias. Or they could have been sold against an existing long position in a covered call trade, which would be bullish up to the strike price but not beyond.

TRIP is down fractionally at $39.22. Earlier this morning shares were at their highest since July 24, after which they gapped lower on poor earnings. The travel-review site's stock bounced off support around $30 going into November.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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