IMAX drew upside option activity yesterday for the second time in about a week.
More than 4,200 July 26 calls were bought for $0.20 and $0.25 in the last 15 minutes of yesterday's session, according to optionMONSTER's Heat Seeker tracking system. Open interest in the strike was just 338 contracts before these trades appeared, showing that these are new positions.
These long calls , which lock in the price where traders can buy shares in the theater-technology company, are looking for the heavily shorted stock to gain roughly 4 percent by the end of next week. If IMAX remains below $26, those contracts will expire worthless. (See our Education section)
The call buying made up almost all the option volume in the name yesterday, which was 5 times its daily average for the last month. Only 9 puts traded in the session, a reflection of the bullish sentiment.
IMAX also saw buying in the August 26 calls on July 3 and has been grinding its way higher since. The stock was off a penny yesterday to close at $25.16.
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