Options Trading News

September 22, 2016  Thu 8:02 AM CT


A large trade is positioning for more gains in Procter & Gamble.

optionMONSTER's monitoring program detected the purchase of 3,067 June 95 calls in one print for $1.60 yesterday. Open interest in the strike was a mere 18 contracts before the trade occured, showing that it is a new position.

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)

PG fell 0.81 percent to $87.86 yesterday but is up 6 percent in the last three months. The consumer-products giant reported bullish results on Aug. 2 and is expected to announce its next quarterly numbers in pre-market hours on Oct. 20.

Overall option volume in the name was twice its daily average yesterday.

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