Bullish Options Sentiment on Liberty Media

By Mike Yamamoto, managing editor of OptionMonster

Liberty Media (LINTA Quote) was up more than 5% Thursday with bullish options activity ahead of its earnings results Friday.

The options trading was heaviest at the August 7.50 strike, in which 7,513 calls changed hands against open interest of just 199 contracts. The calls traded in a strong buying pattern mostly for 50 cents to 70 cents, according to OptionMonster's real-time tracking systems.

Buying also was active in the September 7.50 calls, in which 2,229 contracts traded for 70 cents to 85 cents at more than double the open interest. Calls at all strikes outnumbered puts by 14 to one, indicating an overall bullish sentiment in the television and online media company.

Liberty Media closed Thursday up 5.1% to $7.42, continuing to build on gains of some 60% in just the last month. The stock would need to rise at least another 8% to turn a profit for the August calls purchased Thursday and more than 10.5% for the September contracts.