Call seller sees cap on Digital Globe

optionMONSTER

As shares of Digital Globe slip today, one trader sees limited upside in the satellite-imaging company.

More than 3,600 DGI options have already changed hands today, compared to a daily average of just 436 contracts in the last month. The bulk of that action is in one June call trade.  

optionMONSTER systems show that a print of 2,909 June 27.50 calls was sold for the bid price of $1.70. This is clearly a new position, as open interest in the strike was just 58 contacts before the day's trading began.

The calls weren't tied to any trading in the underlying stock identified by our systems today. But they could well have been sold against an existing long position in a covered call strategy, which would be bullish up to the $27.50 strike price. (See our Education section)

DGI is down 1.5 percent to $26.60 in midday trading. The stock rose after the company's quarterly report on Tuesday and peaked at $28 yesterday. 

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