A large trader is raising the stakes on a bullish position in Lamar Advertising while buying more time for a rally.
optionMONSTER's Heat Seeker system detected the sale of 2,500 October 45 calls for the bid price of $0.95 and the purchase of 4,500 January 45 calls for the ask price of $2.20. Volume was below previous open interest in the October strike but above it in the January contracts, indicating that a position was being rolled forward.
The investor is closing the nearer-dated calls and opening a new position three months later, significantly increasing its size in the process. The new long calls lock in the price where the stock can be purchased no matter how far it might rise, but they will expire worthless if shares remain below $45 through mid-January. (See our Education section)
LAMR slipped 0.23 percent yesterday to close at $43.30. The billboard-advertising company bounced off support below $42 at the start of September but has faced resistance at its 50-day moving average for the last week.
Total option volume in LAMR topped 10,500 contracts yesterday, nearly 5 times its daily average for the last month. Overall calls outpaced puts by more than 2 to 1.
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