Mattel has been rallying for the last three weeks, and traders
think the stock isn't playing around.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 3,000 November 45 calls, most of which priced for
$0.73. Volume was more than 5 times open interest at the strike,
indicating that new money was put to work on the long side.
lock in the price where the toy maker can be bought, letting
investors cheaply position for a rally. They can also generate some
nice leverage, which is exactly what's happening today. (See our
MAT rose 1.92 percent to $45.67 in afternoon trading. But that gain
is nothing compared with the percentage increase of the November
45s, which quickly shot up to over $1.
The company reported better-than-expected earnings and revenue on
Oct. 16 amid strong demand for its American Girl and Monster High
dolls. The stock is now back to its highest level since mid-2007.
Total option volume is 7 times the daily average in MAT so far
today, with calls outnumbering puts by nearly 5 to 1.
have been among the strongest groups in the market recently,
according to our
market scanner, supported by strong numbers at other names such as
Hasbro and Jakks Pacific. They came into today's session up 21
percent in the last month, compared with a gain of less than 5
percent for the S&P 500.
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