The trucking space was in play for the bulls yesterday, with upside option trades hitting Swift Transportation, Con-Way, and Arkansas Best.
optionMONSTER's Heat Seeker system flagged Con-Way first as more than 2,500 November 42.50 calls were purchased, mostly for $2.76. Buyers piled into Swift's November 20 calls around the same time, with 3,500 contracts trading for $1.05 to $1.20. Volume easily surpassed open interest at both strikes, showing that new money was put to work.
A little while later, Arkansas Best lit up our scanners with activity in its November 25 calls. More than 3,000 of those contracts were bought, most of which priced for $0.85.
Calls lock in the price where shares can be purchased, letting investors cheaply position for a rallies while limiting the amount of capital at risk if the stock drops. (See our Education section)
Con-Way rose 3.29 percent to $43.92, Swift climbed 2.11 percent to $19.80, and Arkansas Best gained 3.15 percent to $22.30. All three had big rallies earlier in the year but have been stagnating more recently. CNW and SWFT are trying to run again after testing their 50-day moving averages, while ABFS is attempting to break through its 100-day moving average.
Swift reports earnings on Oct. 23, Con-Way follows on Oct. 31, and Arkansas Best issues results on Nov. 11.
Total option volume was more than 6 times greater than average in all three companies. Calls outnumbered puts by more than 10 to 1 in all three as well.
(A version of this post appeared on InsideOptions Pro yesterday.)
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