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Will Liberty Interactive break out?

Chris McKhann (chris.mckhann@optionmonster.com)

A large call trade is looking for Liberty Interactive to break out of its recent range by early next year.

optionMONSTER systems show that a block of 2,530 July 25 calls was sold for $3.95 against previous open interest of 2,633 contracts. At the same time, 3,060 January 25 calls were bought in one print for $5.10 in volume far above open interest of 102, so that was a new position.

This could be a new ratio calendar spread , but it is more likely that the trader is rolling a long-call position out six months and increasing its size by about 20 percent. (See our Education section)

LINTA is down fractionally at $29.11 this morning, continuing to trade in a very tight range that has been in place for the last couple of weeks. The online and video company was at a 52-week high of $30.68 in early April, and the $28 level has been support going back to mid-February.

More than 6,000 LINTA options have changed hands, eclipsing the daily average of just 132 contracts in the last month.

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