A large trader sees limited upside in Time Warner as volatility in the name continues to come in.
Just over 11,000 TWX options have changed hands today, more than 5 times its daily average in the last month. Most of that is in the October 65 calls, included a big block of 7,932 sold for the bid price of $0.52, optionMONSTER systems show. This is a new position, as the volume was 3 times the previous open interest at that strike.
The calls do not appear linked to any stock trades today, so they could have been sold naked or against an existing long position. The latter would be a covered-call trade that would be bullish, but only up to $65 price because strategy doesn't partake in any gains beyond that. (See our Education section)
TWX is up 0.31 percent to $61.64. The media giant's shares have been in an increasingly tight range for the last month after hitting a high of $66.01 on Aug. 7.
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