Polaris has been in stealth-rally mode for years, and the bulls are sticking around for more.
optionMONSTER's Heat Seeker monitoring program detected the purchase of about 2,100 November 140 calls for about $3.20. Roughly 1,900 October 125 calls were sold at the same time for $9, but volume was below open interest in those.
The investor apparently owned the October contracts and was sitting on big gains when the session began. He or she then closed that position and rolled out and up to the November long calls . The trader received a $1 million credit in the process and gained an additional month of upside exposure to the high-flying maker of off-road vehicles. (See our Education section)
PII rose 3.55 percent to $134.33 on Friday, its 10th record all-time high in the last month. The stock has repeatedly appeared on our researchLAB analysis tool, along with peer Artic Cat, as a better economy encourages people to spend on discretionary items. Other makers of recreational vehicles, such as motor homes, have been running hard as well.
Polaris' next earnings report is scheduled for Oct. 22, after those 125 calls expired, so adjusting the position keeps the trader positioned to benefit from positive news. Shares rallied after the last release.
Overall option volume was 11 times greater than average in the session, according to the Heat Seeker. Calls accounted for a bullish three-quarters of the total.
ACAT is also up roughly 40 percent since being mentioned on our closed-door Market Action webinar in early July.
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