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Pitney Bowes rocks higher with calls

Pete Najarian (ask-pete@optionmonster.com)

Pitney Bowes has performed very well this year, and buyers were active last week.

optionMONSTER's Heat Seeker system showed heavy activity in the July 15 calls and the July 17 calls. A trader apparently sold 15,000 of the 15s for $1.40 to close a winning position, then bought twice as many of the 17s for $0.50.

These long calls lock in the price where shares can be purchased in the company, which provides software, hardware, and services to enable physical and digital communications. The trade is looking for further upside in the stock, which has a large short interest and a high dividend yield. (See our Education section)

PBI rose 5.51 percent to $15.90 on Friday. The stock well outperformed the S&P 500 for several months.

Total option volume in the name surpassed 73,000, compared with barely 3,000 contracts in a typical session. The overwhelming majority--more than 67,000--were calls, reflecting the bullish sentiment.

(A version of this post appeared on InsideOptions Pro on Friday.)

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