Dish Network (DISH) adds 77 cents to $29.93 and a Mar 30 – April 31 call spread trades on the stock for 35 cents, 3500X. The strategist bought April 31 calls to open and is possibly rolling positions opened on Feb 24, the day after earnings were reported, when more than 8,100 Mar 30 calls traded on DISH at a VWAP of about 60 cents. The position is being liquidated at 65 cents today after a 3.9 percent advance in the underlying. DISH has been mostly rangebound in 2012 and is up 2.5 percent year-to-date. Today’s position adjustment might express the view that the stock will break out of its range and move beyond $31 (~3.6%) through the April expiration, which is in 50 days.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.