Dun & Bradstreet has been climbing steadily, and traders are looking for the uptrend to continue.
optionMONSTER's Heat Seeker monitoring system detected the purchase of 3,200 January 120 calls for $1.40 and the sale of an equal number of December 115 calls for $1. Volume was below open interest in the December contracts, which indicates that an existing position was rolled up in price and out in time.
These long calls lock in the price where investors can buy shares in the business-information company, letting them cheaply position for a rally. Adjusting the trade cost $0.40 and provides an additional month of upside exposure. It also protected him or her from the accelerating pace of time decay that will erode the value of the December contracts quickly as expiration approaches on Friday. (See our Education section)
DNB is down 0.31 percent to $115.47 in midday trading but is up 47 percent so far this year. The gains have come amid improving results as business grows in Asia.
Today's transaction appears to be an adjustment of an upside bet placed on Nov. 15 , when the Heat Seeker detected buying in the December 115s for $1.58 to $1.75. While that investor is now looking at a loss, optionMONSTER subscribers doubled their money thanks to our strict profit-taking discipline.
Overall option volume is 93 times greater than average in the name so far today, according to the Heat Seeker. Calls account for a bullish 99 percent of the total.
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