Dish Network has pulled back from 52-week highs reached last week, and traders are buying more time for the stock to rally again.
OptionMonster's tracking systems yesterday detected the sale of May 40 calls for $0.15 to $0.20 and the purchase of June 44 calls for $0.40. About 5,000 contracts traded in each strike.
Calls lock in the price where shares can be purchased in the satellite-television company, and they can deliver significant leverage if the stock continues to run. Rolling the position out a month to a higher strike buys more time for the move to occur and indicates that traders anticipate even more gains than originally thought.