Kimberly-Clark has traded in a tight range, and now the bulls
are looking for a quick acceleration higher.
optionMONSTER's Heat Seeker system on Friday detected the purchase
of 2,200 Weekly 112 calls, which had no open interest when the
session began. The initial buyers paid mostly $0.40 and $0.45 for
those contracts, which expire at the end of this week, but the
premiums ratcheted higher as the shares rose.
lock in the price where investors can buy a stock, which lets them
benefit from a rally without the expense of owning shares. Because
of their comparatively low cost, the contracts can generate
significant leverage from even a modest gain. And that's exactly
what happened on Friday because those Weekly 112s almost doubled to
$0.75 by the close of trading. (See our
KMB rose 0.98 percent to $112.35 on Friday. It was parked around
$110 since February but rose at the end of last week while holding
above last year's highs.
Overall option volume in KMB was more than 6 times greater than
average on Friday, with calls accounting for bullish 84 percent of
Colgate-Palmolive, another consumer-staple company, also ramped
bullish option activity
. Its June 70 calls traded for $0.08 early and ended the session
worth more than $0.50.
(A version of this post appeared on
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