Newell Rubbermaid draws upside bets
Newell Rubbermaid surged to new highs last week, and the bulls see more gains.
optionMONSTER's monitoring system detected the purchase of 2,300 September 57.50 calls for $0.25 to $0.39. There was no open interest at the strike before the trade appeared, an indication new money was put to work.
Calls fix the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. (See our Education section.) Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction.
NWL rose 2.84 percent to $53.95 yesterday and is up 15 percent in the last three months. The last quarterly report on July 29 was bullish, with earnings and revenue beating estimates.
Overall option volume was 6 times greater than average. Calls outnumbered puts by a bullish 4-to-1 ratio.
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