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May 22, 2013  Wed 2:45 AM CT

A long-term call sale topped yesterday's option activity in Under Armour as the athletic apparel company reached new highs.

More than 14,000 UA options changed hands, 7 times its daily average in the last month, and much of the volume was in the January 2015 62.50 calls. A trader sold 6,301 of those contracts for $11.20, clearly a new position as the previous open interest at that strike had been a mere 9 contracts.

The calls could have been sold naked in a position that had an initial bearish bias but could profit even if the stock climbs 25 percent by expiration. Or the calls could have been traded against long stock to create a covered call position, which would be bullish up the strike price but not above it. (See our Education section)

UA climbed 3.58 percent to $64.30 yesterday, a new closing high. Shares had traded at support around $46 three months ago.
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