MeadWestvaco bulls look for more

optionMONSTER

MeadWestvaco has quietly broken out to new highs, and now the bulls think that it will continue to run.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 3,000 September 44 calls for $1.05 today. Some 1,500 June 40 calls were also sold for $2.30, but volume was below open interest in those contracts.

Long calls lock in the price where a stock can be bought, allowing traders to cheaply position for potential gains. It appears the investor entered today's session holding the June long calls and rolled the trade to the higher strike. He or she collected a small credit in the process and gained an additional three months of upside exposure while doubling the number of contracts, which will result in greater leverage if the rally intensifies. (See our Education section)

MWV is up 5.99 percent to $43.01 in afternoon trading, getting a boost after investment firm Starboard Value amassed a stake of more than a 5 percent. Shares also ripped higher on April 30 after the packaging company said market-share gains were lifting volumes. They quickly broke through their peaks from last year and have climbed steadily since.

Overall option volume in the name is 81 times greater than average so far today, with calls accounting for more than 98 percent of the total.

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