The bulls are taking another shot at Coca-Cola Enterprises as
the soft-drink bottler rebounds from a late-June selloff.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 7,500 November 35 calls for $2.75. Volume was almost triple the
previous open interest at the strike, indicating that new positions
lock in the price
where shares can be bought, giving investors a way to track gains
in the stock less expensively than buying shares outright,
providing the potential for significant leverage. For instance, a
move of less than 10 percent in the stock price will translate into
profit of more than 80 percent in the calls. (See our
section for more on using options for leverage.)
CCE rose 0.46 percent to $36.89 in the session. It touched an
all-time high of $39.40 in mid-May, only to lower its guidance the
next month because of weakness in Europe. The stock then headed
lower before bouncing at its 200-day moving average three weeks
Our systems identified
July 38 call buying
back on May 30, but those contracts have now lost almost all of
their value because of the stock's earlier decline.
Total option volume was 10 times greater than average in the
session, according to Heat Seeker. Calls outnumbered puts by a
bullish 23-to-1 ratio.
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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