Polaris has been in stealth-rally mode for years, and the bulls
are sticking around for more.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of about 2,100 November 140 calls for about $3.20. Roughly
1,900 October 125 calls were sold at the same time for $9, but
volume was below open interest in those.
The investor apparently owned the October contracts and was sitting
on big gains when the session began. He or she then closed that
position and rolled out and up to the November
. The trader received a $1 million credit in the process and gained
an additional month of upside exposure to the high-flying maker of
off-road vehicles. (See our
PII rose 3.55 percent to $134.33 on Friday, its 10th record
all-time high in the last month. The stock has repeatedly appeared
analysis tool, along with peer Artic Cat, as a better economy
encourages people to spend on discretionary items. Other makers of
recreational vehicles, such as motor homes, have been running hard
Polaris' next earnings report is scheduled for Oct. 22, after those
125 calls expired, so adjusting the position keeps the trader
positioned to benefit from positive news. Shares rallied after the
Overall option volume was 11 times greater than average in the
session, according to the Heat Seeker. Calls accounted for a
bullish three-quarters of the total.
ACAT is also up roughly 40 percent since being mentioned on our
webinar in early July.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.