Options Trading News

September 19, 2016  Mon 11:19 AM CT


The bulls are targeting United Parcel Service.

optionMONSTER's market scanner shows that about 4,000 November 110 calls were purchased for $1.30 to $1.42 today. This represents new positioning, as there was no open interest in the strike before the session began.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

UPS is up 0.25 percent to $107.13 in afternoon trading but is down 3 percent in the last month. The delivery giant is scheduled to report earnings in pre-market hours on Oct. 27.

Overall option volume is about average in UPS so far today, but calls outnumber puts by a bullish 14-to-1 ratio.

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