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October 28, 2013  Mon 5:16 AM CT

Jacobs Engineering has been rebounding recently, and traders are making cheap bets on more gains in the next three weeks.

optionMONSTER's Heat Seeker shows that 2,000 November 65 calls were purchased for $0.05 to $0.15 on Friday affternoon. The volume was nearly double the strike's previous open interest of 1,131 contracts, indicating that new positions were established.

These long calls lock in the price where traders can buy the stock through mid-November no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below $65. (See our Education section)

JEC slipped 0.23 percent on Friday to close at $60.56. The company, which provides construction and engineering services to companies and government agencies, bounced off support at $56 earlier this month with progress on federal budget negotiations and broke above its 50-day moving average last week.

Jacobs hasn't scheduled its next earnings report, but last week's calendar suggests that it will be released around the time of the November expiration.

Total option volume in the name was 11 times its daily average for the last month. Overall calls outnumbered puts by more than 4 to 1, reflecting the session's bullish sentiment.

(A version of this post appeared on InsideOptions Pro on Friday.)
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