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• What's behind call selling in Royal Gold
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Ingersoll-Rand has been muscling its way higher, and the bulls apparently think that it's just getting started.

optionMONSTER's Heat Seeker tracking system detected at least two large bullish strategies in the company, which makes refrigeration devices, hand tools, and security alarms.

In the first, 4,300 September 38 calls were sold for $5.30 and an equal number of 800 December 41 calls were bought for $4.50. Volume was below open interest in the September contracts, indicating that an existing long position was rolled forward by three months. The investor collected a credit of $0.80 and has more time to profit from a rally.

About 40 minutes later, a block of 2,500 December 32 puts was sold for $1.15 and an equal number of December 41 calls were bought for $4.50. This time the strategy was a bullish synthetic position that behaves similarly to owning shares. If IR climbs, the calls will appreciate and the puts will lose value if IR climbs, but the opposite will happen in the event of a decline.

The shares ended Friday's session down 0.12 percent to $41.97. They climbed early in the year, then spent three months consolidating between $37 and $41.50, and now seem to be finding support above that range. Some chart watchers may interpret the price action as evidence that the stock will now continue higher.

The company's last earnings report on April 20 beat expectations on the top and bottom lines, though guidance remained weak.

Overall option volume was 9 times greater than average in the session, according to the Heat Seeker.

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