By David Russell
Omnicom (OMC) is rebounding from a selloff earlier this year, and one trader is taking profits.
optionMONSTER's tracking programs detected the sale 12,000 March 35 calls for $2.70 against open interest of 1,062 contracts. The trade pushed total options volume in the advertising stock to 36 times greater than average.
OMC fell 0.05 percent to $37.66 Tuesday. The shares fell 12 percent in the first five weeks of 2010 after running into resistance at a key $40 level. Since then, they have found support at the 200-day moving average and rebounded higher.
The trader apparently thinks that OMC has little additional upside, so he/she wrote calls to earn premium and to lock in an exit price on his or her holdings in the shares.
OMC's per-share earnings beat forecasts by a penny the last time the company issued results on Feb. 10. Management predicted revenue growth would turn positive later in the year.
(Chart courtesy of tradeMONSTER)