One investor is turning time into money as NiSource steadily plods higher.
optionMONSTER's tracking programs detected the sale of 3,568 January 42 calls for $0.55 and the purchase of an equal number of July 37 calls for $2.05. Volume was below open interest in the nearer-dated contracts, which suggests that an existing position was closed and rolled forward in time.
He or she probably owns shares in the Indiana-based utility company and previously wrote the July contacts as part of a covered-call strategy . That obligated them to unload shares for $37, and today's transaction raised their exit price to $42. Making the adjustment cost $1.50 but also opened the door to earn $5 more. (See our Education section)
NI is down fractionally percent to $38.76 in afternoon trading but is up 18 percent so far this year. It has benefited from increased natural-gas distribution and transmission revenue, along with strong electricity sales. The stock broke out to record highs in February, giving profitable trades to optionMONSTER subscribers in January and May .
Total option volume is 5 times greater than average so far in the session, with calls outnumbering puts by more than 100 to 1.
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