Traders are betting that the New York Times will rally back to its recent highs in coming months.
More than 2,100 July 11 calls were purchased for $0.24 to $0.35 on Friday, according to optionMONSTER's Heat Seeker tracking system. The volume was twice as high as the strike's open interest of 1,069 contracts before the session began, indicating that this is fresh buying.
These long calls , which lock in the purchase price of the stock no matter how far it might rise, are looking for NYT to rally above $11 by mid-July. But they could expire worthless if the shares remain below that strike price. (See our Education section)
NYT gained 1.47 percent on Friday to close at $10.36. The newspaper company's shares have been working their way back up since plunging from a 52-week high of $11.07 in October on weak quarterly numbers.
Friday's call buying made up almost all of the volume in name in the session, which was nearly triple its daily average in the last month. Only 19 puts changed hands, a reflection of the day's bullish sentiment.
On Thursday the NYT attracted another positive option position when a trader sold 4,000 January 9 puts, counting on a floor in the stock at the $9 level through the end of the year.
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