State Street has been rallying along with other financials, and the bulls kept piling into the investment-management firm yesterday.
optionMONSTER's Heat Seeker system detected the purchase of more than 5,000 January 62.50 calls for $3.25 to $3.35. Volume was more than 60 times open interest at the strike, indicating that new positions were initiated.
These long calls lock in the price where investors can buy stock. Because they cost only a fraction of the share price, the options can generate significant leverage on a percentage basis if STT climbs over the course of the year. (See our Education section)
For example, STT was trading for about $59.72 when those calls were purchased. It then pushed higher and ended the session up 2.14 percent at $60.53. Those January 62.50 calls, meanwhile, appreciated more than 10 percent to $3.65 in the same period.
Total option volume was 5 times greater than average in the session, with calls accounting for a bullish 79 percent of the total.
(A version of this post appeared on InsideOptions Pro yesterday.)
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