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Bulls piling onto World Wrestling

David Russell (david.russell@optionmonster.com)

For the second day in a row, the bulls are targeting World Wrestling Entertainment.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 5,500 April 30 calls today, most of which priced for $1.20 to $1.33. Previous open interest in the strike was just 3,765 contracts, so new money was clearly put to work.

These long calls lock in the price where a stock can be purchased, letting investors cheaply position for a move higher. Because they cost much less than the shares themselves, the contracts can result in tremendous leverage if shares move in the right direction. (See our Education section)

Just yesterday , traders snapped up the July 30 calls for $1.50 to $1.80, which have now inflated to $2.60.

WWE is up a penny at $26.25 in morning trading. It's more than tripled in the last year as management reworks television contracts and earnings have beaten expectations.

Total option volume is twice the daily average so far today, according to the Heat Seeker. Overall calls outnumber puts by a bullish 36-to-1 ratio.

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