Options Trading News

December 31, 2013  Tue 12:21 PM CT

Toy makers have been ripping higher, and one investor is sticking with Hasbro.

Back on Oct. 21, a chunk of 13,000 April 52.50 calls was purchased for $2.20 as an investor looked for upside in the shares. That wager has paid off, and now they're rolling that long position to a higher strike price.

This time the trader unloaded all of the April 52.50s for $3.60 and bought a matching number of April 55 calls at an average premium of $2.26. Making the adjustment yielded a credit of $1.34 and keeps the investor exposed to further gains. (See our Education section about managing risk with options.)

Rival Mattel also saw bullish activity yesterday.

HAS is off 0.27 percent to $54.82 in afternoon trading but is still up 53 percent this year. Shares have been climbing as the company introduces new products and grows overseas. The stock gapped higher after its last earnings report on October and consolidated at all-time highs before starting to rally again in the last two weeks.

The next quarterly release is scheduled for Feb. 10, so those April contracts will benefit if the numbers are strong.

Overall option volume is 174 times greater than average in the name so far today, according to the Heat Seeker. Calls account for a bullish 97 percent of the total.
Share this article with your friends

Invest Like a Monster - San Antonio: October 9-10


The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »