Millicom Options Trade Plays for Time
By Pete Najarian, co-founder of OptionMonster
OptionMonster's tracking systems indicate that the owner of 4,000 April 105 calls apparently sold the contracts for 20 cents and rolled the position to the July 110 calls. The trader paid $1.20 for the new position but, including the money from the April calls, the net cost was $1.
Millicom operates as a global telecommunications group with mobile telephony in 14 countries across Central America, South America, Africa, and Asia. Last week Mario Gabelli, CEO of Gamco Investors, said it could be the next company snapped up in the wake of the planned merger of AT&T (T) and T-Mobile.The stock edged lower by 0.16% to close Thursday at $97.70 but is still up 12% in the last month. The company's next earnings report is due on April 19. The roll caused a spike in Millicom's option volume, driving it to about 18 times its daily average. Najarian has no positions in MICC.
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