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February 13, 2013  Wed 12:22 PM CT

PCS: SEE CHART GET CHAIN FIND STRATEGIES
The calls have been working in MetroPCS Communications, and bulls don't want to let go of a good thing.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 14,190 April 9 calls for $1.38 and the sale of an equal number of February 9s for $1.19. Volume was below open interest in the February contracts but not the April options, indicating that a long position was rolled forward in time.

Without this adjustment, the trader would have been forced to buy shares upon February expiration at the end of the week because the calls are in the money. The investor now has an additional two months to profit from gains in the provider of mobile communications. It cost $0.19 to adjust the position. (See our Education section)

PCS is up 0.99 percent to $10.25 in afternoon trading. The stock has been consolidating around $10 for the last three months after a big autumn rally. Some investors more than doubled their money in the name last month using the March 11 calls.

Total option volume is quadruple the daily average so far today, with calls outnumbering puts by more than 200 to 1.

The company's next earnings release is scheduled for the morning of Feb. 26.
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As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

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