Clearwire (CLWR) loses 3 cents to $2.19 and a Dec 2 – Jan 2.5 call spread trades on the stock at 7 cents, 19500X. Dec 2 calls were sold at 37 cents per contract and probably covers a position opened in late-July when the stock was trading for about $1.10 and 28,000 were bought for 15 cents per contract (see 7/27 color). A new position is now being opened in the Jan 2.5 calls, possibly expressing the view that shares have more upside potential heading into 2013. CLWR has rallied in the past few months and is now well off 52-week lows of only 90 cents per share, but has lost nearly 70 percent during the past two years.
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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.