Crown Castle has been falling since its earnings report last month, but one trader apparently believes that the stock is ready to rebound.
Nearly 1,500 September 70 calls were bought in less than a minute yesterday for $1.10 to $1.25, according to optionMONSTER's Heat Seeker tracking system. This is clearly fresh buying, as the strike's open interest was 841 contracts before the trade appeared.
These long calls lock in the price where the trader can buy shares through mid-September. But the contracts could expire worthless at that time if CCI remains below the $70 strike price. (See our Education section)
CCI gained 0.16 percent to $67.77 yesterday. The wireless-tower operator dropped sharply after announcing second-quarter results on July 24 and continued to decline afterward, but the stock is now at a support level that goes back to last December.
Total option volume in CCI was 3,150 yesterday, compared with a daily average of 1,994 for the last month. Calls outpaced puts by about 1.7 to 1.
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