Upside Calls Look For Continued Gains In Shares Of Dreamworks
DWA ? Dreamworks Animation SKG, Inc. ? Fresh interest in upside call options on the creator of animated feature films suggests some traders are positioning for the price of Dreamworks shares to continue to march higher during the next six months. The stock is up roughly 2.2% on the day at $34.75 as of 11:00 a.m. EST.
Shares in Dreamworks rallied more than 40% during the second half of 2013, and trading in the Jun ?14 $38 strike calls on the stock today looks for shares to extend gains during the first half of 2014. Upwards of 3,000 of the Jun ?14 $38 calls have changed hands so far today against open interest of 109 contracts, and it looks like most of the volume was purchased at an average premium of $2.33 each. Call buyers stand ready to profit at June expiration should shares in DWA rally 16% over the current price of $34.64 to exceed the average breakeven point at $40.33. The stock at its current level is poised to end 2013 up nearly 110% for the year.
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