Call buyers come back to Interpublic

By David Russell,

Shutterstock photo

Interpublic broke out in May, and now the bulls are back.

optionMONSTER's tracking programs detected the purchase of 5,000 January 20 calls for $1.05. Volume was more than triple open interest at the strike, which indicates new positions were initiated.

Calls lock in the price where investors can buy the advertising stock, letting them ride a rally with limited risk. Their cheap cost can also result in significant leverage if shares move in the right direction. (See our Education section.)

IPG rose 0.15 percent to $19.53 yesterday, and is up 9 percent in the last three months. It lit up our screeners several times before that move, yielding huge profits for traders who followed the unusual activity. Improving results have supported sentiment.

Total option volume was twice average amounts, with calls outnumbering puts by more than 5 to 1.

(A version of this post appeared on InsideOptions Pro yesterday.)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: IPG

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