Omnicom popped on an upgrade today, and the bulls are piling in.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of some 3,600 January 75 calls for $0.90. Volume was more
than 30 times open interest at the strike, indicating that new
money was put to work.
lock in the price where shares can be purchased in the advertising
company, letting investors position for a rally at minimal cost.
This way they can manage risk and generate potentially significant
leverage. A 10 percent move in the share price, for instance, will
drive up those January 75s by more than 400 percent. (See our
OMC is up 2.86 percent to $72.57 this afternoon, trading above $73
at one point for the first time ever. The pop came after Goldman
Sachs upgraded the shares to "buy" from "neutral" and raised its
price target to $88 from $68.
The company already reported strong quarterly results in October,
spurring hopes that demand would continue to improve into year-end.
It's also in the process of merging with Publicis Groupe.
Overall OMC option volume is 22 times greater than average so far
today, according to the Heat Seeker. Calls account for a bullish 95
percent of that total.
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