Hasbro trader winds up for gains

optionMONSTER

Hasbro is surging after a strong quarterly report, and one investor is repositioning for more gains next spring.

optionMONSTER's Heat Seeker system detected the sale of 13,205 November 50 calls for $1.60 and the purchase of 13,205 April 52.50 calls for $2.20. Volume was below previous open interest in the November strike but far above it in the April contracts, indicating that the trader is rolling a long-call position.

The investor is closing the nearer-dated calls, which are in the money with today's gains, and and is paying $0.60 to buy another six months to stay in the trade. The new long calls are looking for HAS to rally further by mid-April but will expire worthless if shares remain below $52.50. (See our Education section)

HAS is up 6.98 percent to $50.54 today. The toy maker gapped higher this morning after third-quarter results beat expectations on the top and bottom lines, and it is now breaking out of a range in place since last April.

Total option volume in the name is just shy of 30,000 so far today, more than 60 times its daily average for the last month. Only 406 of those contracts are puts, a reflection of the session's bullish sentiment.

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