Liberty Media was up more than 5 percent yesterday with bullish options activity ahead of its earnings results today.
The options trading was heaviest at the August 7.50 strike, where 7,513 calls changed hands against open interest of just 199 contracts. The calls traded in a strong buying pattern mostly for $0.50 to $0.70, according to OptionMonster's real-time tracking systems.
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Buying was also active in the September 7.50 calls, where 2,229 contracts traded for $0.70 to $0.85 at more than double the open interest. Calls at all strikes outnumbered puts by 14 to 1, indicating an overall bullish sentiment in the television and online media company.
Liberty Media closed yesterday up 5.1 percent to $7.42, continuing to build on gains of some 60 percent in just the last month. The stock would need to rise at least another 8 percent to turn a profit for the August calls purchased yesterday and more than 10.5 percent for the September contracts.
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Mike Yamamoto is an analyst and writer for OptionMonster.