Newell Rubbermaid seals in buying
Newell Rubbermaid finished last week at all-time highs, and traders are betting on even more gains.
About 2,500 April 26 calls traded in a strong buying pattern for $0.25 to $0.35 on Friday, optionMONSTER's Heat Seeker system shows. These are new positions, as there was no open interest in the strike at the beginning of the session.
NWL rose 3.87 percent to close at $24.94 on Friday, just off a lifetime high of $25 reached 5 minutes earlier. The maker of houshold products has been rising steadily since bouncing off its 50-day moving average in late February amid optimism over global expansion plans.
Friday's long calls , which lock in the purchase price of the stock, are looking for NWL to gain roughly 5.5 percent or more by mid-April. These options could be sold earlier at a profit if their value rises with any rally before then, but they will expire worthless if shares remain below the $26 strike price. (See our Education section)
Overall option volume in the name was 4,441 contracts, 10 times its daily average of just 441 in the last month. Only 105 puts changed hands in the session, a reflection of the day's bullish sentiment.
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