Market News

November 22, 2016  Tue 7:16 AM CT

Western Union is drawing a highly bullish position.

OptionMonster's monitoring system shows that 7,300 January 22 calls were purchased for $0.22 to $0.25 while 7,300 January 19 puts were sold for $0.15 to $0.18 yesterday. These are new positions, as volume was well above the open interest in both strikes.

This combination trade is especially bullish because a rally would boost the price of the long calls while decreasing the value of the puts that were sold. But the opposite will occur if the stock drops, and the trader will be on the hook to buy shares if they fall below $19 by expiration. (See our Education section)

WU rose 2.78 percent to $21.05 yesterday but is down 4 percent in the last three months. The money-transfer service reported bullish results on Nov. 1 and is expected to release its next quarterly numbers after the close on Feb. 9.

Overall option volume in the name was 8 times greater than average yesterday. Calls outnumbered puts by a narrow margin.

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