CNBC Stock Blog

Options Bullish on This Home-Entertainment Stock

David Russell|writer, OptionMonster
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Dish Network saw a surge in call buying late Friday, as investors positioned for the satellite-television stock to keep climbing in the New Year.

OptionMonster's real-time systems detected the purchase of 15,900 March 23 calls for $1 in the final minutes of trading. Open interest in the strike stood at just 13 contracts before the transaction appeared.

DISH stock fell 0.19 percent to $20.96, rising again early Monday, and is up 20 percent since the beginning of November. The company has been showing signs of a turnaround, adding customers at a quick pace while absorbing higher marketing and legal expenses. It gapped higher following its last earnings report on Nov. 9 and appears to be consolidating above the $20 level that served as resistance in August and October.

The shares need to climb about 15 percent by expiration for the calls to turn a profit.

Overall options volume in DISH was 12 times greater than average on Friday. Calls outnumbered puts by 42 to 1.

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CNBC/OptionMonster Trading School:

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Dish Network Competes With:

DirecTV

Comcast

Cablevision Systems

Time Warner Cable

______________________________________________________David Russell is a reporter and writer for OptionMonster.

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