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Dish's Heavy Options Action After Earnings

Mike Yamamoto|Managing Editor, OptionMonster
Tuesday, 12 May 2009 | 8:02 AM ET

Dish Networks is drawing heavy stock and options trading after reporting strong quarterly earnings.

Dish closed yesterday up more than 17 percent to $17.92 as more than 10 million shares traded, nearly three times the average volume. Options volume was also high yesterday as some 25,000 contracts traded, more than six times the daily average.

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The options action was concentrated at the May 19 calls, where 12,471 changed hands against open interest of just 48 contracts, according to OptionMonster's tracking systems. Overall, Dish calls outnumbered puts by 10 to 1.

The activity indicates that traders believe the stock will reach $19 by Friday, when the May contracts expire. The satellite TV company released surprisingly positve quarterly numbers before the opening bell yesterday, with earnings up by 21 percent, or $0.70 per share, beating analysts' consensus estimate of 0.56 EPS.

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Mike Yamamoto is an analyst and writer for OptionMonster.

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