One big investor doesn't want to miss a breakout in Archer
optionMONSTER's Heat Seeker monitoring system detected the purchase
of almost 10,000 December 38 calls, most of which priced for $1.60.
Volume was more than 36 times open interest at the strike.
He or she has now locked in a $38 entry price on the grain
processor through Dec. 20, no matter how high it may trade during
that time. That's the same level where it peaked in early 2011.
lets traders avoid missing a big rally in the stock while limiting
the amount of capital at risk in a pullback. The cheap cost of the
options relative to their underlying equity can also result in
significant leverage on a percentage basis in a rally. (See our
ADM is up 1.34 percent to $36.96 in afternoon trading and has risen
34 percent so far this year. Earnings come out before the opening
bell on Tuesday. The last report on May 1 missed expectations after
drought conditions reduced grain harvests.
Total option volume is more than 5 times greater than average in
the name so far today, according to the Heat Seeker. Calls
outnumber puts by 17 to 1.
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