Options News
$DISH bulls tune in to profits
Bullish option traders are tuning in to profits by doubling their money today in Dish Network (DISH). On Mar. 23, Market Rebellion’s Unusual Activity scanners showed that 10,000 June $40 calls were purchased for $2.14 to $2.15 with shares at $36.59. These were clearly new positions, adding to an existing position on the Unusual Option Activity Log. […]
Bullish option traders are tuning in to profits by doubling their money today in Dish Network (DISH).
On Mar. 23, Market Rebellion’s Unusual Activity scanners showed that 10,000 June $40 calls were purchased for $2.14 to $2.15 with shares at $36.59. These were clearly new positions, adding to an existing position on the Unusual Option Activity Log.
Those calls traded up to $4.40 this morning, more than twice their purchase prices. The stock rose 16.1% at the same time, underscoring how quickly options can far outpace gains in their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
DISH jumped higher for a second day, up 2.49% to close at $41.96 this session. Morgan Stanley raised its price target on the shares to $45 from $38 this morning, while yesterday Dish and AWS (AMZN) announced a strategic collaboration for 5G services.