Arkansas Best ripped to a new high today, and the bulls are giving chase.
optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,000 October 25 calls, most of which priced for $3 and $3.20. Volume was almost 60 times open interest at the strike.
These long calls lock in the price where shares can be purchased in the trucking stock, letting investors cheaply control movement in the stock. That can result in significant leverage if this year's blistering rally continues. (See our Education section)
ABFS is up 5.2 percent to $26.31 this morning and has almost tripled since the beginning of 2013. It's been riding a wave of bullish sentiment in the transportation sector and benefited from ratifying a new labor agreement in May.
Today's push higher comes after Raymond James upgraded the stock to "strong buy" from "market perform."
Total option volume is 14 times greater than average in the name so far today, according to the Heat Seeker. Calls outnumber puts by a bullish 39-to-1 ratio.
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