Traders are looking for a comeback in OfficeMax, which gapped
lower after its last earnings report in June.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of more than 2,000 January 12 calls, most of which priced
for $1. Volume was more than 38 times the previous open interest at
the strike, indicating that new positions were initiated.
OMX rose 0.51 percent to $11.83 on Friday. The office-supply
retailer more than tripled between August 2012 and February and has
been shuffling in a range since. The shares traded for more than
$12 before last month's poor quarterly numbers, then fell to their
200-day moving average around $10 and have been rebounding since.
owner of the calls
now has the right to purchase shares for $12 through early next
year, no matter how high they may trade during that time. Now he or
she doesn't have to worry about missing a move in the stock and
stands to enjoy considerable leverage if it rallies. (See our
OMX's next set of quarterly results will be announced before the
opening bell on Aug. 6.
Total option volume was 17 times greater than average in the
session, with calls outnumbering puts by 377 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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