What's behind call sale in Verizon
Verizon Communications is drawing an income trade.
optionMONSTER's monitoring systems detected the sale of 9,240 March 52.50 calls for $0.22 in one print on Friday. Volume was more than 4 times open interest at the strike, which indicates that this is a new position.
Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief upside will be limited through expiration. (See our Coaching section)
VZ rose 1.96 percent to $49.97 on Friday and is up 7 percent in the last week. The last quarterly report on Jan. 21 was bullish. The next quarterly report is scheduled for pre-market hours on April 21.
Overall option volume was about average in VZ.
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