Traders stay bullish on InterPublic


Investors continue to like InterPublic Group.

The advertising firm has been the target of bullish call buying on multiple occasions in the last two weeks, and Friday's activity continued the bullish theme with at least two unusual option trades.

The first trade appeared in the May 18 calls and the May 17 calls as a long position was apparently rolled from the higher strike to the lower strike. They sold the 18s for $0.20 and bought the 17s for $0.45, with 6,100 contracts changing hands in both.

Those 18s were originally purchased for $0.35 back on March 28, so traders have already taken a loss on them. Adjusting to the lower strike increased leverage but also cost an additional $0.25, so they clearly want to stay long the name. (See our Education section)

IPG fell 1.21 percent to $16.28 on Friday and has been churning in a range since last summer. It's been pushing against a long-term resistance level dating all the way back to 2004, which could make some investors expect a big run if it's broken. Earnings come out before the opening bell on April 22.

In a second trade, an investor bought 2,525 October 16 puts for $1.20 and sold an equal number of January 15 puts for $1.50, apparently rolling a short position to the lower strike. He or she collected $0.30 and has confidence that downside will be limited in the name. (See our Education section.)

Finally in the afternoon, 2,000 May 16 calls were bought for $0.85 and 4,000 May 17s were sold for $0.35. Known as a ratio spread , that trade is less bullish because it will leverage a move only to $17.

Total option volume was 22 times greater than average in the session.

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