AOL gapped higher last week, and the bulls are looking for more.
optionMONSTER’s Heat Seeker monitoring program detected the purchase of 10,000 April 36 calls for $2.15 and the sale of 10,000 April 31 puts for $0.35. Volume was more than 40 times open interest at both strikes.
The position cost $1.80 to open and is similar to owning shares in the online media site. Interestingly, they bought calls that are much closer to being in the money than the puts they sold. That increased the cost of the trade and made it more conservative, suggesting that he or she may think that a pullback is possible.
— Option Monster