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More call selling in Alcatel-Lucent

Chris McKhann (chris.mckhann@optionmonster.com)

Alcatel-Lucent is seeing large call selling for the second time in less than a week.

optionMONSTER systems show that more than 16,000 ALU options have traded, more than triple its daily average in the last month. Virtually all of that volume is in the January 2015 2 calls.

A trader sold smaller blocks for $0.45 and then a big print of 11,267 for the bid price of $0.40. This is clearly new positioning, as the previous open interest in the strike was 5,641 contracts.

The call selling is a bet that ALU won't trade much above the $2 level in the long term, likely done against an existing long position as a covered call trade. The action follows a large sale of September 2 calls last Friday . (See our Education section)

ALU is down another 1.7 percent today to $1.73 this morning. The Paris-based maker of telecom equipment traded up to a high of $2.01 last week, but shares were down below $1 into November. 

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