U.S. Markets closed

CenturyLink attracts big bullish play

Chris McKhann (chris.mckhann@optionmonster.com)

A large three-way trade is bullish on wireless carrier CenturyLink.

optionMONSTER systems show that a trader bought 11,408 December 29 puts for $0.05 while purchasing 14,136 January 35 calls for $0.05 and selling the same number of the January 28 puts for their bid price of $0.05. The volume at both of those January strikes was above previous open interest, indicating new activity.

The investor is very likely rolling a bullish trade out a month, buying back short puts in December to close that position and opening a new combination spread a month later. He or she takes in a credit and has a position that can profit from gains in the long calls , especially above $35. (See our Education section)

CTL is up 1.27 percent to $31.84. It was at a low of $29.93 at the start of the month and was trading above $35 at the start of August.

Total option volume in CTL yesterday topped 42,000 contracts, compared to the daily average of 2,221 in the last month.

More From optionMONSTER