Bullish Buying in Abovenet

Shares of Abovenet (NYSE: ABVT) are falling today by 1.66% to $46.51, but one trader is betting that the provider of high-bandwidth connectivity solutions will rally in the near-term. The May $50 call was purchased on the offer 1,000 times for $0.70 a short while ago. This action has pushed call volume to 6.91x the daily average with 99% of all calls traded being purchases on the offer.

Abovenet is now trading below both the 50-day and 200-day moving averages. Which is a strong, bearish sign. $50 looks to be resistance on the topside; I surely would not be buying that call as the above trader has unless it was as a hedge to short shares.