Level 3 Communications, Inc. (LVLT) Bullish Options Activity Leads to a Lucrative Trade

Level 3 Communications, Inc. (LVLT) is a provider of a range of integrated communication services operating in North America, Europe, Latin America and Asia. LVLT is trading at $54.26 around the upper end of its 52 week range of $37.61-$57.08. Year to date the stock has outperformed the market rising 9.21%. The stock ripped to the upside in today’s session by about 2.30% or $1.22.

Early in the session a trader bought 9,690 of the LVLT Aug 60.0 Calls for $0.42 when the stock was trading at $53.14. This order was recorded about two hours after the open on OptionHacker, and the stock rose about $0.59 to $54.40 after the trade hit the tape. Over 19,200 contracts have been traded today hinting at bullish sentiment. The LVLT July 60.0 Calls have traded as high as $0.95 today making this a highly profitable trade. This stock has been trading below the Ichimoku Cloud on the intraday time frames for the past month, but continually ripping to the upside.

Trade: A trader bought 9,690 of the LVLT Aug 60.0 Calls for $0.42
Risk: $42 per 1 lot
Breakeven: $60.42

If a trader bought a 20 lot of these Calls they would have profited $1060 at the highs on $840 in risk. This is a great example of a hugely profitable UOA trade.

Andrew Keene

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