The option action was highly bullish in Family Dollar Stores
yesterday for a second straight session.
optionMONSTER's Seeker market scanner detected the purchase of
about 3,000 December 72.50 calls for $1.30 and the sale of 2,000
November 70 calls for $0.20. Volume was below open interest in the
November contracts that expire today, which suggests that an
existing position was closed and rolled to the November 72.50s.
lock in the price where shares can be purchased in the discount
retailer, letting investors cheaply wager on a rally. Adjusting
their bet cost an additional $350,000. He or she also increased the
number of contracts, indicating a strongly bullish outlook on the
name. (See our
FDO rose 0.36 percent to $69.88 yesterday. It touched an all-time
high above $75 in September, then pulled back to $67 by early this
week before bouncing. The stock has been making steadily higher
highs and higher lows since early 2008, so traders are looking for
that long-term uptrend to continue.
Total option volume was 5 times greater than average in the name,
with calls outnumbering puts by a bullish 16-to-1 ratio.
The Heat Seeker also showed
in the January 70s on Wednesday for $2.70, which traded for as much
as $3.50 yesterday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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