Hhgregg has been on a tear for the last four months, and some traders are looking for even more gains in the home-appliance and electronics retailer.
optionMONSTER's Heat Seeker system detected the purchase of 1,580 October 19 calls yesterday afternoon for $0.35 to $0.45. These are new positions, as there was no open interest before the session began.
HGG rose 2.85 percent yesterday to close at $14.79. The heavily shorted stock has been climbing steadily since breaking out of a multi-month range in the beginning of February, gaining some 75 percent in that time.
Yesterday's long calls , which lock in the price where traders can buy the stock no matter how far it might climb, are betting that HGG will rise more than 30 percent by mid-October. These options could be sold earlier at a profit if premiums rise with a rally before then, but they will expire worthless if the stock remains below the $19 strike price. (See our Education section)
Total option volume in the name was 11 times higher than its daily average for the last month. Calls outnumbered puts by more than 9 to 1, another sign of yesterday's bullish sentiment.
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