Large trader stays bullish on Hasbro
Mike Yamamoto | [email protected]
optionMONSTER's Heat Seeker system detected the sale of 12,969 October 45 calls for $2.50 and the purchase of 12,969 October 47.50 calls for $1.20. Volume was below previous open interest in the lower strike, indicating that a long-call position was rolled higher.
The move allows the trader to take some profits off the table from the earlier position and still profit from another leg higher in the stock. The long calls are looking for HAS to rally by mid-October but will expire worthless if they remain below the $47.50 strike price. (See our Education section)
HAS is down 1.13 percent to $46.27 in afternoon trading. The toy maker pulled back after spiking higher with its last earnings report on July 22 but appears to be consolidating around current levels. Management said last Thursday that its board had approved a $500 million share-buyback program and that the company would continue to offer a $0.40 quarterly dividend.
Today's roll pushed total option volume in Hasbro to 26,436 contracts, more than 25 times its daily average for the last month. Only 278 puts have changed hands in the name so far today.