One option trader wants leverage in Dish Network, which has been steadily working its way higher all year.
OptionMonster’s tracking programs detected the purchase of 2,000 January 32 calls for $1.74 and the sale of an equal number of January 25 puts for $0.60.
Calls become more valuable when shares climb because they lock in the price where a stock can be bought. Puts lose value to when a stock rises because they guarantee a minimum selling price. Buying calls and selling puts leverages the investor to upside on both halves of the trade because the long calls will appreciate while the short puts will lose value.