By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Dish Network (DISH) has pulled back from 52-week highs reached last week, and traders are buying more time for the stock to rally again.
OptionMonster's tracking systems Tuesday detected the sale of May 40 calls for 15 cents to 20 cents, and the purchase of June 44 calls for 40 cents. About 5,000 contracts traded in each strike.
Calls lock in the price where shares can be purchased in the satellite-television company, and they can deliver significant leverage if the stock continues to run. Rolling the position out a month to a higher strike buys more time for the move to occur and indicates that traders anticipate even more gains than originally thought.The shares rose 0.08% to $38.84 Tuesday, continuing to trade sideways since hitting a high of $40.95 last Wednesday. Calls outnumbered puts by 14 to 1, a reflection of the session's bullish bias. Najarian has no positions in DISH.
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