Mobile Telesystems, Vimpel Attracting Bulls to Russian Telecom

By David Russell

Options trading is bullish in Mobile TeleSystems (MBT) today after the Russian wireless carrier bounced higher from an old resistance level.

OptionMonster's Heat Seeker monitoring system detected the purchase of 3,850 July $42.50 calls for $1.40 against no existing open interest. The trade accounted for more than 80 percent of the options action in the name today and pushed volume to three times average.

MBT is up 2.69 percent to $39.65 in early afternoon trading. After surging above $44 early this month, the stock pulled back near the $38 level, which had previously served as resistance. Some traders may be interpreting the chart bullishly now that $38 appears to be providing support.

Another Russian telecommunications company, Vimpel-Communications (VIP), also received bullish trades today, rising 4.58 percent amid heavy call buying. Both MBT and VIP bucked a 1.19 percent decline in the broader Russian index as tracked by the RSX exchange traded fund.