Buyers count on Sealed Air to pop

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Sealed Air has been rocking since August, and the bulls apparently think that it will keep on rolling.

optionMONSTER's Heat Seeker scanners detected the purchase of 5,100 January 20 calls late in Friday's session for $3.60 and $3.70 in volume that dwarfed the strike's previous open interest of just 137 contracts. SEE immediately jolted higher and ended the session up 0.77 percent to $22.38.

These long calls lock in the price where investors can buy shares. That will provide significant leverage if the bubble-wrap maker continues to climb this year, but even a relatively small decline could erase all their value. (See our Education section)

SEE has gone nowhere for more than a decade and remains far below its peaks from two years ago. But results have been improving in recent quarters, especially after the company divested businesses and took steps to improve profitability.

Total option volume was 11 times greater than average in the name on Friday. Calls outnumbered puts by a bullish 81-to-1 ratio.

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



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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This article appears in: Investing , Options

Referenced Stocks: SEE

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