By Chris McKhann , analyst at OptionMonster

LONDON ( TheStreet) -- Virgin Media ( VMED) saw institution-sized call buying late Tuesday after a rival TV company ended a longstanding legal dispute.

OptionMonster's tracking systems detected a block of 10,000 March 15 calls bought for 90 cents against open interest of 7,341 contracts, so this trade was clearly opening a new position. The strike has averaged call volume of just 139 a day for the last month.

Virgin Media shares have fallen sharply since trading well over $17 only three weeks ago, but they finished Tuesday's session up some 3.5% to $14.54 after rival British pay-TV group BSkyB sold a 10.4% stake in commercial broadcaster ITV. That move, which was ordered by the U.K. government, effectively ended a protracted legal fight with Virgin.

The stock would need to rise roughly 9.4% for the March 15 calls to turn a profit. Total calls at all strikes in the name outnumbered puts by more than 1,100 to 1.

At the time of publication, McKhann had no positions in the stocks mentioned.