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Calls see Expeditors going places

Expeditors International of Washington has been running higher with other transports, and the bulls piled in yesterday.

optionMONSTER's Heat Seeker tracking program detected the purchase of more than 4,000 June 45 calls, most of which priced for $0.65. Volume dwarfed previous open interest of 70 contracts, indicating that this is fresh buying.

Long calls lock in the price where investors can buy stock in the transportation-logistics company, providing them with cheap upside exposure. They can also generate significant leverage if shares keep moving in the right direction. (See our Education section)

EXPD rose 2.84 percent to $45.93 yesterday and is up 17 percent in the last month. It languished for years and consistently reported weak results until a week ago, when profit and revenue both matched estimates.

Total option volume was 12 times greater than average in the session, with calls outnumbering puts by a bullish 43-to-1 ratio.

(A version of this post appeared on InsideOptions Pro yesterday.)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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