Wednesday November 11, 07:29 PM
STOCKS NEWS US-Investor takes bullish view on MetroPCS
Stocks on the move
Real (Frankfurt: BJU.F - news) -time Equity news
U.S. stock market report
1307 ET 11Nov2009 Investor (Stockholm:
INVE-B.ST - news) takes bullish stance in MetroPCS
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Options action on wireless carrier MetroPCS Communications suggests
a change of heart for one investor who booked profits on a previously
established bearish position and then initiated a new bullish stance in the
February 2010 contract, said Interactive Brokers Group option analyst Caitlin
Duffy.
The trader established a February risk reversal by selling 15,000 puts at
the $5 strike spread against the purchase of the same number of calls at the
higher $7.50 strike for a net cost of a nickel per contract. The position
suggests the investor expects shares to top $7.50 by February expiration, she
said.
At the same time, the player closed out a 15,000-lot put position at the
November (Frankfurt: A0Z24E - news) $7.50 strike established back on Sept. 16 when shares were at $10.
'The investor accurately predicted shares were unlikely to remain at the $10
level, and thus accumulated significant profits to the downside by taking the
long put position,' she said. The investor today pocketed net profits of $1.37
per contract from the sale of the Nov puts.
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