One investor thinks the tide may finally be turning for Central European Media.
optionMONSTER's Heat Seeker trade scanner detected the purchase of 7,500 October 7.50 calls for $0.36 and the sale of an equal number of October 10 calls for $0.01. This is new positioning, as there was no open interest at either strike before the transaction appeared.
It cost $0.35 to open this vertical spread , which will expand to $2.50 if the Czech broadcaster climbs to $10 on expiration. That would represent profit of 614 percent from the shares less than doubling. (See our Education section for more ideas on how to generate leverage using options.)
CETV is up 4.72 percent to $5.10 in morning trading. It is down more than 95 percent from the peaks of late 2007 and is near the $5 level that's been support for the last four years.
Although its results have been consistently poor, the stock is up today after the company said it may sell assets or renegotiate suppliers. CETV trades for about one-third of its stated book value, which could be leading some value investors to think that it's too cheap.
Total option volume is 270 times greater than average in the name so far today, according to the Heat Seeker. Not a single put has traded so far.
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