Bullish Option Play in Clearwire
Shares of wireless service provider Clearwire (Nasdaq: CLWR) are trading 10% higher Friday morning following yesterday's second-quarter earnings release. The company stated that it expects to lose less money than previously thought, and is considering new funding sources in the future.
This morning's option activity suggests at least one investor is looking for a breakout in the company's shares over the remainder of 2012. There was a purchse of two 14,000 contract blocks of December 2 calls at $0.15. These contracts will need the stock to nearly double in price over the next 5 months to reap any profits.
Friday's activity has pushed Clearwire's total contract volume to 50 times its daily average and creates the second largest open interest position in all of it's listed options.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.