Market News

November 25, 2016  Fri 7:16 AM CT

Traders are betting that Darling International will rally in the next month.

OptionMonster's monitoring system detected the purchase of nearly 3,000 December 14 calls for $0.25 to $0.70 on Wednesday. This presents fresh buying, as open interest in the strike was only 206 contracts before the day began.

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)

DAR rose 6.98 percent to $14.57 on Wednesday but is down 3 percent in the last three months. The producer of food and fuel ingredients is expected to announce quarterly results after the close on Feb. 28.

Overall option volume was 67 times greater than average in the name on Wednesday. Calls outnumbered puts by a bullish 32-to-1 ratio.

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