The bulls apparently believe that Cabela's will start moving
again soon after months of consolidation.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of more than 2,500 January 70 calls for $0.30 to $0.50.
Volume was more than 18 times the previous open interest at the
strike, showing that new money was put to work.
lock in the price where a stock can be purchased, letting investors
cheaply position for a rally. They can also generate significant
leverage if traders get the direction right. (See our
CAB is up 0.27 percent to $65.97 in afternoon trading. The
sporting-goods retailer more than doubled in value between the
start of 2012 and last May but has been range-bound since. The
stock is back above its 200-day moving average, which could make
some momentum traders think that it's ready to rally again.
While the company hasn't yet announced the date of its next
earnings release, last year's calendar suggests it will occur in
mid-February, after today's contracts expire.
Total option volume is about 11 times greater than average so far
in the session, according to the Heat Seeker. Calls outnumber puts
by more than 15 to 1.
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