Time Warner broke out last month, and the bulls are looking for more gains.
optionMONSTER’s Heat Seeker program showed that more than 9,300 July 70 calls traded yesterday, most of them bought for $0.87 to $0.99. The volume was far above the strike’s previous open interest of just 497 contracts, an indication of fresh purchases.
These long calls lock in the price where the stock can be bought through mid-July no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will expire worthless if shares remain below $70.
— Option Monster