United Parcel Service ended last week at lifetime highs, and one trader is getting even more bullish ahead of the company's earnings report this Friday.
optionMONSTER's Heat Seeker system detected the sale of 14,000 October 92.50 calls were sold for $0.09 and purchase of roughly the same number of November 95 calls, mostly for $0.49. Volme was below previous open interest in the lower strike but above it in the higher contracts, indicating that a long-call position was rolled foward.
The trader closed the October calls before they expired at the end of Friday's session and opened a new position in November at a strike that is $2.50 higher. The new long calls are looking for UPS to continue rising for the next month but will expire if shares are below $95 in mid-November. (See our Education section)
UPS rose 1.17 percent on Friday to finish at $93 even, a new closing high and just a penny off an all-time high reached in the session. The stock pulled back with the rest of the market earlier this month but bounced off its 50-day moving average around $88.50 and has been climbing since.
The global delivery service is scheduled to release third-quarter results on Friday before the opening bell.
Total option volume in UPS topped 66,000 contracts on Friday, triple its daily average for the last month. Overall calls outpaced puts by 10 to 1.
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