Manitowoc started rallying in December, and traders think it's
just getting started.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 20,000 June 33 calls for $1.25 and the sale of 15,000
June 30 calls for $2.35. Volume was below previous open interest in
the 30s, which suggests that an existing position was closed and
rolled to the higher strike.
The trader probably got long when the maker of cranes and
food-service equipment was at a much lower price. Now that it's run
higher, he or she is recovering $1 million of the original capital
spent and remains exposed to further gains through the new
. (See our
section for more on how to manage positions at low cost with
MTW is up 3.51 percent to $30.09 in afternoon trading and has risen
57 percent in the last three months. The last three earnings
reports have beaten estimates as new products and cost controls
boost margins and offset weak revenues.
The shares are now back to levels last seen in mid-2008 when the
broader market was collapsing. They quickly crumbled from $40 to
$30 at that time, which could make some chart watchers now expect a
rapid retracing of that drop.
Total option volume in the name is already more than 11 times its
full-session average for the last month, according to the Heat
Seeker, with calls outnumbering puts by 110 to 1.
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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