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Calls look to seal gains in Tupperware

David Russell (david.russell@optionmonster.com)

Tupperware has been going straight up, and some investors don't want to be left behind.

optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 1,500 March 80 calls for $0.80. Volume was 69 times previous open interest at the strike, indicating that new money was put to work.

These calls lock in the price where shares can be bought in the consumer-products company, which has been riding a wave of strong earnings to record levels. The options have the potential to generate significant upside leverage but will expire worthless if the stock pauses or drops.

TUP rose 0.75 percent to $76.77 on Friday and is up 48 percent in the last year. Given how much it has already moved, some investors may be wary about buying stock at these levels. Calls make it easier to navigate the trade because they cost barely 1 percent of the share price, while saving the investor from missing a continued rally. (See our Education section for more on how it can be safer to trade options than stocks.)

Almost 3,200 contracts traded in the session, 5 times greater than average. Calls accounted for a bullish three-quarters of the total.

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