Odd trade is bullish on Cablevision

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Cablevision is seeing an unusual three-way combination trade as shares climb to two-year highs.

optionMONSTER systems show that more than 13,000 CVC options have changed hands already today, almost twice its full-session average for the last month. The big trade started with 3,000 December 16 puts that went for $0.70 in volume far above previous open interest of just 25 contracts.

Seconds later, a block of 3,000 August 20 calls were sold for their bid price of $0.80 against open interest of 3,340, so that could have been a closing transaction. And moments after that, 5,200 September 20 calls were bought for the ask price of $1.05 in volume that was more than 10 times the open interest at that strike, clearly a new position.

It appears that the trader is rolling the August long calls forward by a month and increasing the size of the position to get more upside exposure. He or she could also be selling the puts to help fund the adjustment. The trade marked the second time that Cablevision has drawn bullish option activity this week. (See our Education section)

CVC is up 2.5 percent to $19.22 this morning, its highest level since August 2011. Shares of the cable TV operator were down at $14 three weeks ago.  

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