Office Depot is coming back from the dead, and the bulls apparently think that it isn't done running yet.
optionMONSTER's Heat Seeker monitoring system detected the purchase of about 4,400 April 4 calls against previous open interest of 3,327 contracts. Most of them priced for $0.28 to $0.30.
Those long calls lock in the price where investor can buy shares in the office-supply retailer. They can generate significant leverage in the event of a continued rally but will expire worthless if the shares fail to advance. (See our Education section)
ODP is up 2.24 percent to $3.88 in afternoon trading. The stock fetched more than $40 during its heyday in 2006 but has struggled with weakening store traffic since. Business has shown signs of improving more recently, driving the shares up by more than 100 percent from their long-term lows in August.
The next earnings report is scheduled for Feb. 26.
Total option volume in ODP is 17 times greater than average so far today, according to the Heat Seeker. Calls outnumber puts by a bullish 148 to 1.
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