VZ – Verizon Communications, Inc. – Shares of the provider of communications services increased as much as 1.725% during the trading session to secure an intraday high of $30.06, but are currently up a lesser 1.25% on the day to stand at $29.92 as of 2:50 pm ET. Bullish strategists dominated options activity on the stock today with a number of investors scooping up call options in the August and September contracts. Near-term optimists purchased approximately 4,100 calls at the August $30 strike for an average premium of $0.30 each. Traders long the calls make money if, by expiration, Verizon’s shares exceed the average breakeven price of $30.30. Bulls looked to the higher August $31 strike to buy some 3,000 calls for an average premium of $0.05 apiece. VZ’s shares must rally 3.8% over the current price of $29.92 in order for investors long the August $31 strike calls to make money above the average breakeven point at $31.05 by August expiration. Traders expecting shares of the underlying stock to appreciate ahead of September expiration purchased about 2,300 calls at the September $30 strike for an average premium of $0.60 a-pop. Investors long the calls are poised to profit should Verizon’s shares rally 2.3% to first surpass the current 52-week high of $30.53, and ultimately breach the average breakeven point on the calls at $30.60 by expiration day next month.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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