Dish Network
hasn’t traded at $45 since late 2007, but long-term option activity targeted that level yesterday.
OptionMonster’s tracking programs detected the purchase of 10,000 January 2014 45 calls for $1.30 yesterday against previous open interest of just 19 contracts. They’re way out in time and out of the money, but the trade’s sheer size definitely drew attention.
Dish Network
Those callslock in the price investors must pay to buy shares in the satellite-television company in the next 18 months. These options can generate some nice leverage if DISH powers higher but will expire worthless without a rally. Trades such as this are popular because they allow positions to be established over long periods at minimal cost.
Dish Network shares rose 2.74 percent to $29.96 yesterday and remains trapped in the same range it's seen over the last year. The company's next earnings report is on Aug. 8 before the bell.
Overall option volume was quadruple the daily average yesterday, with calls outnumbering putsby more than 100 to 1.
—By CNBC Contributor David Russell
Additional News: Dish Drops AMC Networks as Contract Expires
Additional Views: Value Hunters Target Gold Fields: Russell
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David Russellis a reporter and writer for OptionMonster . Russell has no positions in DISH.
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