Ericsson Bull Goes Long Distance

Ericsson has been trading sideways since spring, but one investor is holding out hope for a rally by early next year.

optionMONSTER’s Heat Seeker system shows that a trader sold 8,000 October 13 calls for $0.20 and $0.15 while buying 5,000 January 13 calls for $0.55. Volume was below previous open interest in the October strike but above it in the January contracts.

This indicates that the trader is selling the nearer-dated calls and rolling the position forward by three months, essentially buying more time for the upside play to work.

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