Option Bulls Tune Into Dish Network
lost a legal petition to move its ad-skipping copyright case, but option activity remained bullish yesterday.
Buyers lit up the July 30 calls on OptionMonster’s tracking systems as almost 5,300 traded for $0.10 versus previous open interest of just 373 contracts. Smaller activity also appeared in the July 29s, which went for $0.15 and $0.30.
Callslock in the price investors must pay to buy stock in the satellite-television company. The options can generate some nice leverage in the event of a rally, but will expire worthless if the stock doesn’t move.
Dish Network fell 1.8 percent to $27.75 after cutting losses late in yesterday’s session. The night before a judge rejected a request by the company to have the copyright case moved to New York from Los Angeles. The dispute centers around Dish Network’s “Auto Hop” feature, which lets viewers avoid watching commercials.
More than 6,900 calls traded against fewer than 200 puts, a reflection of the bullish sentiment yesterday. Total option volume in the name was almost quadruple its daily average.
—By CNBC Contributor Pete Najarian
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