(The following is an example of notable trading cited on optionMONSTER's I nsideOptions Pro service yesterday.)
Raytheon is trying to bounce, and the bulls are locked in.
optionMONSTER's Heat Seeker system detected the purchase of almost 8,000 June 110 calls yesterday in volume well above the previous open interest of 2,478 contracts. The calls initially traded for $0.98 traded for as much as $1.55 by the afternoon as the defense contractor pushed higher.
Long calls set the price where investors can buy a stock, which ensures that they won't miss a rally. The relatively cheap cost of these options can also generate significant leverage on a percentage basis if shares move higher. (See our Education section)
RTN was initially down yesterday but ended the session up 0.31 percent to $107.08. It touched long-term support around $104 in late April before jumping on Friday. Earnings and revenue beat forecasts and management raised guidance the last time quarterly results were announced.
Total option volume was 11 times greater than average in the session, with calls outnumbering puts by a bullish 20-to-1 ratio.
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