Alternatively, strategists could be hedging short positions in the stock, reducing the cost of protection by establishing call spreads rather than simply buying calls outright.
Contrarians betting on a rebound took to multiple expiries, buying calls and selling puts in the August contract, as well as initiating bullish spreads in longer-dated contracts.
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Yes, someone could be buying these calls speculatively, but they could be buying this call with a put and hoping for movement.
Personally, I am not a big fan of buying covered calls back after they have run away from me.
In this scenario, the trader sold (to open) the March 11 calls while simultaneously buying the March 13 calls.
During the past 10 days, in fact, speculators on the ISE, CBOE, and PHLX have bought to open 22.90 puts for every call on the shares, marking a near annual-high pace of put buying relative to calls.
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To play the uptrend in Boeing using options, McMillan recommends buying the Nov 100 calls (BAKT).
Nearer-term options players are buying more of the calls exchanged at out-of-the-money strikes as compared to those selling the contracts.
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If your budget calls for buying it in the first quarter of 2013, accelerate the purchase if your cash flow allows, Butler says.
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There are other moves you can make as well, such as hedging by selling covered calls or buying mutual funds that invest in foreign currencies to protect against the decline of the dollar.
As for pricing, it just so happens that the premium you collect for the three out-of-the-money calls you are selling would be just a little more than the cost of buying two at-the-money calls.
Comments by fans on the club's Facebook page included "embarrassed to be a Wanderer", "disgusting decision" and calls to boycott buying the shirts.
The guidance calls on the largest buying agencies to identify and develop at least 15 new government-wide strategic sourcing solutions that their agencies will commit to using over the next two years.
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The trader significantly decreased the cost of taking a directional stance on the stock by employing a call spread instead of buying the closer-to-the-money calls outright.
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Most of the time, machine data is an indication of business activity, either customers travelling through a web site, making calls, texting each other, or buying stuff.
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There will be investor calls every quarter, the awareness that people are buying his stock based on expectations of future earnings, shares being traded daily.
Buying DCR like shorting crude oil but without the nuisances (such as margin calls and tax issues).
Notable bullish call buying was seen at the August 150 strike price where more than 1, 000 calls were scooped up for an average premium of 3.56 apiece.
Out-of-the-money puts on the index are generally more expensive than equally OTM calls because more investors want to protect their stock portfolios on the downside by buying puts than tend to speculate on a rise in the index.
When Dent calls for 3, 800, run back in with a fat checkbook and start buying.
As we have pointed out over the past year in our disclosures and quarterly calls, we have taken advantage of the dislocations in the European sovereign debt market by buying short dated debt in European peripherals and financing those securities to their exact maturity date.
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June and July contract calls are the most active with in- and out-of-the-money call buying a seemingly popular strategy amongst traders.
Not that the Carlton boss is one to throw money around recklessly - he has built his empire on an aggressive buying strategy, but keeps a firm eye on the bottom line, abhoring debt and keeping what he calls "old-fashioned" accounts.
Ryan Goldston decorated his apartment in a style he calls "Ralph Lauren-esque, " covering his couch and chairs with old suit fabric and buying white furniture to create an airy, light feel.
The company, which often is criticized for its low-paying jobs and buying habits in the U.S., recently has faced allegations that it made bribes in Mexico and calls for better safety oversight after a deadly fire at a Bangladesh factory that supplies its clothes.
Also, in seven of the last nine weeks, more than 100 stocks reached buying climaxes--that is, hitting a new high, only to close the week lower, something Burke calls a classic sign of distribution.
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