For the second time in the last two weeks, the bulls are targeting Coca-Cola Enterprises.
optionMONSTER's Heat Seeker monitoring program detected the purchase of some 2,100 June 37 calls, most of which priced for $0.50. Volume was almost 5 times the previous open interest at the strike, clearly indicating new positions.
These long calls lock in the price where shares can be purchased in the soft-drink bottler, letting investors position for upside at minimal cost. Their cheap price can also result in significant leverage if the shares move in the near term. A gain of less than 3 percent by the end of next week, for instance, would double the investor's money. (See our Education section for more.)
CCE is up 0.24 percent to $37.13 in afternoon trading and has been trending steadily higher since 2009. Its earnings have beaten expectations for at least the last four quarters, and the stock touched an all-time high above $39 in May before pulling back along with the rest of the market.
The shares have been rebounding since they touched their 100-day moving average last week, which could make some chart watchers think that the momentum remains bullish. There was also bullish option activity in the name on May 30 .
Some 2,500 contracts have changed hands in the stock so far today, more than quadruple the average volume. Calls outnumber puts by a bullish 8-to-1 ratio, according to the Heat Seeker.
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