IMAX has made a move, and one investor is taking profits.
optionMONSTER's tracking systems detected the sale of about 5,100 March 26 calls for $0.80 to $1. Volume was more than 45 times open interest in the strike.
The trader is now obligated to sell shares in the image-technology company if they close at or above $26 on expiration. He or she probably owns the stock and is using the options as part of a covered call strategy. (See our Education section)
Including the credit earned today, the exit price would be about $26.90. That's the same price level where IMAX had support immediately before collapsing in July, which could be leading some traders to expect resistance around that area on the chart.
Shares rose 0.08 percent to close at $23.75 on Friday and are up 30 percent so far this year.
The call selling pushed total option volume in IMAX to more than 5 times its daily average.
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