Time Warner pullback draws bulls

Time Warner has fallen sharply this year, but the bulls piled into the media company yesterday.

optionMONSTER’s Heat Seeker program detected the purchase of 37,000 March 67.50 calls for $0.52 to $0.64. Volume was more than 500 times the previous open interest in the strike, which indicates that new positions were initiated.

These long calls lock in the price where investors can buy the stock, letting them cheaply position for potential gains. This way they limit the amount of capital at risk and can earn significant leverage if the stock rallies.

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