Bullish traders are snapping up calls in Discovery Communications ahead of the media company's earnings report next week.
OptionMonster's real-time tracking systems detected the purchase of more than 4,000 May 40 calls for $1.25 against open interest of just 601 contracts yesterday. Overall option volume was 33 times greater than average in the name, with calls outnumbering puts by nearly 84 to 1.
DISCA shares closed Tuesday up 1.31 percent to $40.53. (See ticker for current share price.) Shares have continued to hold long-term support and appear to have broken out of a short-term downtrend this month.
The company is scheduled to report earnings on April 28.
Russell has no positions in DISCA.
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David Russell is a reporter and writer for OptionMonster.