Options Trading News

August 2, 2013  Fri 12:20 PM CT

The bulls are tuning in for more upside as Viacom explodes higher today.

The media company is up 5.9 percent to $78.75 in afternoon trading after announcing that it would double its share-buyback program to $20 billion. Earnings missed by a narrow margin, but revenue beat thanks to strong advertising sales.

Viacom has also seen bullish action in the option market, with optionMONSTER's Heat Seeker system showing the purchase of more than 7,400 August 80 calls against previous open interest of just 49 contracts. The largest block priced for $0.95.

These long calls lock in the price where shares can be purchased, letting investors cheaply acquire upside exposure to the stock. The options can profit if VIAB continues to run in the next two weeks, while limiting the amount of money that can be lost in a selloff. (See our Education section)

Today's move represents another record high for the VIAB, which owns MTV and Comedy Central. It's up 49 percent so far this year.

Total option volume is 5 times greater than average in the name, according to the Heat Seeker. Calls outnumber puts by a bullish 17-to-1 ratio.
Share this article with your friends

Related Stories


Call buyers come back to Viacom

September 21, 2015

The entertainment company has been marching higher since hitting a four-year low when the S&P 500 plunged in late August.


Momentum bulls follow Viacom

September 8, 2015

The entertainment company gapped down after missing on the top and bottom lines in early August but has been drifting steadily higher since.



The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »