Bulls back for more in Hanesbrand
Hanesbrand is attracting bullish option activity for the second session in a row.
OptionMonster's tracking program detected the purchase of more than 5,200 April 25 calls for $1.20 to $1.35 today. Volume dwarfed the strike's open interest of 258 contracts, showing that this is new positioning, and follows buying in the January 25 calls yesterday
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)
HBI is up 0.89 percent to $23.68 in morning trading but is down 12 percent in the last three months. The underwear maker is expected to report earnings after the close on Feb. 2.
Calls outnumber puts by a bullish 7-to-1 ratio so far today.
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