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Time is money to one Invesco trader

David Russell (david.russell@optionmonster.com)

One investor is turning time into money with Invesco.

optionMONSTER's tracking programs detected the purchase of 2,500 February 28 calls for $0.05 in volume under the strike's previous open interest, which indicates that an existing short position was closed. The trader rolled the position forward in time, selling equal number of April 29 calls for $0.26.

He or she probably owns shares in the money manager and has been selling calls to earn income while holding a long stock position. Adjusting the trade let the investor collect an additional $0.21 of income and raised by $1 the level at which the stock would have to be sold. (See the discussion of covered calls in our Education section.)

IVZ rose 0.54 percent to $27.78 yesterday. The stock is up 18 percent in the last three months as investors return to the financial sector.

In addition to the income from selling calls, yesterday's investor is collecting the stock's 2.5 percent annualized dividend yield.

Total option volume was 28 times greater than average in the session.

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