One investor hopes for some good news when Martin Marietta reports first-quarter results tomorrow.
optionMONSTER's Heat Seeker monitoring system detected the purchase of about 2,000 May 100 calls against previous open interest of just 116 contracts. Premiums rose from $1.40 to $1.80 as the trades crossed, with the largest block pricing at the top of the range.
The trader now has the right to buy shares in the provider of sand and gravel for $100 in the next three weeks no matter how high they may go. He or she has the potential to earn significant leverage and now has long exposure at a fraction of the stock price, which limits risk. (See our Education section for more on how options can be used to manage trades.)
MLM is up 0.91 percent to $97.57 in morning trading. It appreciated more than 60 percent between last June and March amid improving sentiment in the construction industry but has been retreating since. The shares are now trying to bounce around the same $95 level that was resistance several times in recent years, which could be leading some chart watchers to believe that it will keep rallying.
First-quarter results are scheduled to be released tomorrow morning.
Total option volume is 45 times greater than average so far today, according to Heat Seeker. Calls outnumber puts by 56 to 1.
More From optionMONSTER
- Must-reads for improving your skills
- Cramer: Energy action is outstanding
- Nuance falls on weak quarterly results
- Stocks & Offerings
- Martin Marietta