For the second time in a week, the bulls want to get a jolt from Generac.
optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 11,000 November 55 calls, most of which priced for $1. Volume dwarfed previous open interest of 289 contracts, which indicates new money was put to work.
Such long calls lock in the price where investors can buy a stock, letting them cheaply position for gains. The contracts can produce significant leverage if shares move in the right direction but can also lose value on a pullback. (See our Education section)
Yesterday's activity followed bullish call buying in the November 52.50s last Wednesday .
GNRC rose 1.32 percent to $46.91 yesterday. The maker of electric generators fell sharply between May and July but found support at a key high from 2013 and has been rebounding since. It's also back above its 50-day moving average, which could make some chart watchers expect a rebound.
Overall option volume in the name was 12 times greater than average in the session. Overall calls accounted for a bullish 90 percent of the total.
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