Strategy gives free rein to Amphenol

optionMONSTER

Amphenol has been ripping higher in the last month, and one investor wants to give the stock even more room to run.

optionMONSTER's monitoring programs detected the sale of about 2,200 September 65 calls for $0.70. A similar number of August 50 calls were bought at the same time for $2.30, but volume was below open interest in those. This suggests that an existing short position was closed in the front month and rolled forward to September.

The trader probably owns shares and had previously sold the August calls to manage risk. Adjusting the position now cost $1.60 but will let him or her collect an additional $5 of upside on the stock if it continues to climb. The trader also agreed to remain in the position for an additional month.

APH rose 1.69 percent to $61.36 yesterday and is within $1 of an all-time high. The company, which sells myriad electrical supplies, is up 35 percent this year after a string of positive earnings reports.  

Overall option volume was 15 times greater than average in the session, with calls outnumbering puts by more than 20 to 1.

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