Buyers dive into Campbell Soup

optionMONSTER

Campbell Soup has been rebounding sharply, and option traders cleaned up in a hurry on Friday.

optionMONSTER's Heat Seeker system showed quick buying in the December 43 calls, with large blocks hitting for $0.15 to $0.35 early in the afternoon. The shares started climbing almost immediately, and those options shot as high as $0.95.

These long calls lock in the price where a stock can be purchased no matter how far it might climb, giving investors a relatively inexpensive way to position for a rally. They can also tremendous significant leverage to the share price, which is exactly what we saw on Friday. (See our Education section)

CPB was up about 3 percent when the calls started moving but ended the session higher by 5.34 percent to $42.24. The food company plunged from the $42 area on Nov. 19 because of weak quarterly results and guidance, but it has now filled that gap.

Almost 20,000 of those December 43 calls would eventually change hands in volume far above the strike's previous open interest of just 1,019 contracts. Overall option volume was 17 times its daily average for the last month, with total calls accounting for a bullish 9-to-1 ratio.

(A version of this post appeared on InsideOptions Pro on Friday.)

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