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Bulls like Procter & Gamble at highs

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Procter & Gamble is trading at all-time highs, and traders are looking for the rally to continue into next year.

optionMONSTER's Heat Seeker detected heavy buying in the February 90 calls, which saw about 11,000 contracts trade in a strong buying pattern for $0.53 to $0.62 yesterday. There was no open interest in the strike at the beginning of the session, so these are all new positions.

These long calls lock in the price where the stock can be purchased through mid-February no matter 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 $90. (See our Education section)

PG was down fractionally yesterday to close at $84.67, just off its lifetime high of $84.98 reached a day earlier. The consumer-products giant has been trending steadily higher since hitting support at the $76 level in early October.

Yesterday's call buying pushed PG's total option volume past 25,500 contracts, 60 percent higher than its daily average for the last month.

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