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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV