Market News

November 30, 2016  Wed 7:16 AM CT

Thor Industries spiked higher on strong quarterly results yesterday, and one trader is looking for even more gains.

OptionMonster's market scanner shows that 2,000 December 95 calls were sold for $5.60 while 1,000 December 100 calls were purchased for $2.65 yesterday. Volume was below open interest in the lower contracts, indicating that the trader is taking some profits and rolling a bullish position to a higher strike but reducing its size.

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)

THO rose 12.61 percent to $101.84 yesterday and after beating earnings and revenue estimates. The maker of recreational vehicles is up 15 percent in the last month.

Overall option volume in the name was 11 times greater than average yesterday. Calls outnumbered puts by a bullish 3-to-1 ratio.

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