Market News

November 22, 2016  Tue 8:22 AM CT

A large trader is extending a bullish position in Union Pacific.

OptionMonster's monitoring system detected the sale of 11,250 December 97.50 calls for $4.05 and the purchase of 11,250 January 100 calls for $3.95 yesterday. Volume was below open interest in the December contracts, indicating that a bullish position was rolled forward by a month to a higher strike.

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)

UNP rose 0.92 percent to $100.75 yesterday and is up 10 percent in the last month. The railroad operator's next quarterly results are expected to come out in pre-market hours on Jan. 19.

Overall option volume in the name was 3 times greater than average yesterday. Calls outnumbered puts by a bullish 5-to-1 ratio.

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