By Pete Najarian, co-founder of OptionMonster
NEW YORK -- The bulls piled into New York Times (NYT)early Tuesday, looking for the media stock to rally.
OptionMonster's tracking systems detected activity in the October 9 and 10 calls. The October 9s traded for 95 cents, with more than 1,200 changing hands, while the October 10s fetched 30 cents. Volumes were well above the open interest in each strike, indicating new positions.
Those contracts lock in the price investors must pay for the stock and will generate some nice leverage in the event of a rally. But these options will lose value if the stock doesn't move.New York Times shares rose 0.1% Tuesday to close at $9.60. Early in the session, the company announced the planned sale of its remaining interest in online job-search site Indeed.com, which is being acquired by Japan's executive-search firm Recruit for an undisclosed amount. More than 2,400 calls traded against just 241 puts in the name, a reflection of the session's bullish sentiment. Najarian has no positions in NYT.