DigitalGlobe has spiked higher since reporting earnings at the end of October, and one investor is betting on even more gains.
A trader sold 3,000 November 32.50 calls for $4.54 and bought the same number of December 37.50 calls for $1.24 on Friday, according to optionMONSTER's Heat Seeker tracking system. Volume was below previous open interest in the November contracts, which expired at the end of last week, and above it in the December options.
This indicates that an investor is rolling a bullish position forward by a month to a strike $5 higher. The new long calls lock in a $37.50 purchase price for DGI no matter how far it might rise, but the contracts will expire worthless if the stock remains below that level through mid-December. (See our Education section)
DGI rose 3.63 percent on Friday to close at $36.81. The satellite-imagery company is up more than 15 percent since announcing third-quarter results barely two weeks ago.
Total option volume in the name topped 9,200 on Friday, more than 17 times its daily average for the last month. Only 235 of those contracts were puts, a further indication of bullish sentiment.
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