Satellite : Bulls stay tuned into Dish

[robby3333]

Bulls stay tuned into Dish Network-10/13/2009




Dish Network is pulling back for the second straight day, but the bulls are still on board.

optionMONSTER's tracking systems detected the sale of 4,000 October 16 calls for $3.20 against existing open interest of 4,016 contracts. Simultaneously, a new long position was opened in 4,000 November 18 calls for $2.10.

DISH is off a penny to $19.57 this afternoon. The satellite-television stock has rallied 10 percent in the last month but is declining after failing to break through a previous high around $20.

One large option trader apparently expects the pullback to be only temporary. By selling an existing positioning the October calls and buying new November options, he or she rolled forward a bullish position in the name by one month while recovering $1.10 in premium.

Other options activity was also positive on DISH. The November 19 calls traded 2,118 times against open interest of 1,634 contracts. Most of the transactions resulted from purchases for $1.50.

The October 19 calls were also actively traded, though volume was below open interest. Overall options activity in the name was four times greater than average. Calls outnumbered puts by 9 to 1.