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Fast money in Swift Transportation

(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)

The bulls made quick money yesterday in Swift Transportation.

optionMONSTER's Heat Seeker tracking programs detected the purchase of about 12,000 September 18 calls for $1.15. Volume was more than twice previous open interest at the strike, an indication new money was put to work.

Long calls lock in the price where investors can buy shares. They appreciate to the upside and provide exposure to a rally with limited cost. The contracts can also generate significant leverage, as we saw yesterday when the trucking stock climbed and drove up the calls about 50 percent to $1.80. (See our Education section)

SWFT was up almost 2 percent at one point yesterday but ended the session down 0.93 percent to $19.26. It has been trying to hold last year's lows around $19. Short interest accounts for about 11 percent of the float, which could potentially draw buyers as well.

Total option volume in the name was 7 times greater than average in the session, with calls outnumbering puts by more than 60 to 1.

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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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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