Volatility To Increase in DirecTV (DTV)

Shares of DirecTV Inc. DTV are lower on the session by 1.72%, currently trading at $38.75. The company said today that they have reached a partnership with Google GOOG to sell TV ads on eleven channels. One options trader that sold a strangle on the stock back in late June is closing out his or her position today as they revisit their initial thesis that volatility in the name will be muted. Today, the January 2011 $34/40 strangle was purchased 20,000 times for $3.65. The trade netted a profit of $0.35 per contract over the holding period. DIRECTV, incorporated in 2009, is a provider of digital television entertainment in the United States and Latin America. The company operates two direct-to-home operating segments: DIRECTV U.S. and DIRECTV Latin America.