Options Bullish on This Cable Service Provider

A large options trader apparently thinks that Comcast is heading higher.

OptionMonster's tracking systems detected heavy buying of the August 15 calls yesterday for $0.20 and $0.25. In just half an hour, the strike traded 10,098 times against open interest of 681 contracts. Another 1,357 contracts changed hands in the strike the rest of the session.

Comcast rose 0.44 percent to $13.66 yesterday and is up 3.09 percent in the last month, compared with an 9.07 percent gain for the S&P 500. The call buyer may be betting on strong results when the cable company reports second-quarter earnings before the bell on Aug. 6.

Alternatively, the trade may have resulted from an investor buying calls and selling the shares as part of a so-called delta-neutral strategy that would benefit from increased movement in the shares.

Options volume in Comcast was more than eight times average yesterday, with calls outnumbering puts by 75 to 1.

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David Russell is a reporter and writer for OptionMonster.