Ryder call buyers take the wheel

optionMONSTER

Ryder has pulled back from multi-year highs since the beginning of the year, but traders are looking for its rally to resume in coming weeks.

More than 2,800 February 75 calls were bought yesterday for $1.30 to $1.74, according to optionMONSTER's Heat Seeker tracking system. Open interest in the strike was just 428 contracts before the session began, indicating that new positions were established.

These long calls lock in the price where traders can buy the stock through mid-February no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below $75. (See our Education section)

The truck-rental company is scheduled to release fourth-quarter results on Feb. 4, about 2-1/2 weeks before that month's options expire. Management will present at the Stifel Transportation and Logistics Conference on Feb. 12.

R gained 0.35 percent yesterday to close at $72.58. The stock has been drifting lower since peaking at $73.97 on Dec. 31, its highest price since July 2008.

Total option volume topped 3,400 yesterday, 16 times its daily average for the last month. Only 215 of those contracts were puts, a reflection of the session's bullish sentiment.

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