How one bull is playing Hasbro


Hasbro has been snoozing for months, but one investor apparently believes that a rally is coming.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 12,212 August 57.50 calls for $0.40 and the sale of an equal number of July 57.50 calls for $0.075. Volume was below open interest at the nearer-dated strike, which suggests an existing position was closed and rolled forward in time.

Long calls lock in the price where investors can buy the toy maker's stock, which allows them to position for gains with limited risk. Yesterday's transaction cost a net $0.325 and kept the investor in the trade for another month. It also prevented him or her from worsening time decay as expiration approaches in mid-July. (See our Education section)

HAS rose 2.13 percent to $53.77 yesterday and has been drifting in a range since November. Earnings have beaten expectations the last two quarters as higher-margin new products offset weak sales. The stock has also been finding support at its 200-day moving average this month, which could make some chart watchers expect a rally.

Total option volume was 84 times greater than average in the session, with calls outnumbering puts by almost 300 to 1.

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