Bulls Beam In on Dish Network
Dish Network has pulled back from 52-week highs reached last week, and traders are buying more time for the stock to rally again.
OptionMonster's tracking systems yesterday detected the sale of May 40 calls for $0.15 to $0.20 and the purchase of June 44 calls for $0.40. About 5,000 contracts traded in each strike.
Calls lock in the price where shares can be purchased in the satellite-television company, and they can deliver significant leverage if the stock continues to run. Rolling the position out a month to a higher strike buys more time for the move to occur and indicates that traders anticipate even more gains than originally thought.
Dish rose 0.08 percent to $38.84 yesterday, continuing to trade sideways since hitting a high of $40.95 last Wednesday. Calls outnumbered puts by 14 to 1, a reflection of the session's bullish bias.
—By CNBC Contributor Pete Najarian
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian has no positions in DISH.