Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 6, 2012  Tue 2:45 AM CT

MTW: SEE CHART GET CHAIN FIND STRATEGIES
Manitowoc fell after reporting quarterly results yesterday morning, but one trader is betting that the stock will bounce higher by Christmas.

More than 2,500 December 17 calls were bought in less than 10 minutes yesterday, most of them going for $0.30, according to optionMONSTER's Heat Seeker tracking system. The volume was 5 times the strike's open interest of 509 contracts at the start of the session, so it was fresh buying.

The long calls are looking for MTW to gain roughly 21 percent by expiration on Dec. 21. These options can be sold earlier if their premiums rise with a rally in the stock, but they will expire worthless if the shares don't move.

MTW fell 2.52 percent yesterday to close at $14.32. The crane manufacturer reported third-quarter earnings of $0.17 per share in the pre-market, well below the consensus estimate of $0.29 EPS. Revenues came in at $955.7 million, short of the $1.05 billion that analysts had been looking for.

Shares dropped sharply in late September in sympathy after construction-equipment giant Caterpillar issued a sobering outlook on the global economy, but the stock has trending higher since then with its 50-day moving average as support. The company is scheduled to present at the Robert W. Baird Industrial Conference today at 5:05 p.m. ET.

Overall option volume in the name was 2.5 times higher than its daily average. Calls outnumbered puts by about 6 to 1.
Share this article with your friends


Related Stories

MTW

Traders look for lift in Manitowoc

September 2, 2014

The crane manufacturer gapped down after its earnings report at the end of July but held support at its 200-day moving average and has been drifting higher since.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER