For one bull, Boise looks good on paper

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The paper is turning bullish in Boise.

optionMONSTER's Heat Seeker tracking system detected the purchase of 12,775 June 8 calls for $1.025 and the sale of an equal number of June 10 calls for $0.30. There was barely any open interest in either strike before the trades occurred.

This bullish call spread cost $0.725 and will earn a maximum profit of 176 percent if the maker of paper and cardboard closes at or above $10 on expiration. That's about the same level where it peaked in 2007 and early last year. (See our Education section)

BZ fell 0.53 percent to $7.54 yesterday but is up more than 30 percent in the last three months. Shares have been melting back up after the market's crash in August drove them below book value.

Its last earnings report on Nov. 3 was in line with analyst estimates, but revenue was stronger than expected. The year-end release hasn't been scheduled yet, but last year it occurred in early March.

Overall option volume was more than 140 times the daily average in BZ, with not a single put traded.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.



This article appears in: Investing , Options


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