This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Morgan Stanley Bulls Look for a Rally

By David Russell, reporter at OptionMonster

NEW YORK ( OptionMonster) -- Option traders are looking for a rally in Morgan Stanley (MS - Get Report) as it consolidates slightly below its 200-day moving average.

OptionMonster's real-time systems detected the purchase of more than 14,000 March 20 calls for 61 cents to 65 cents against open interest of just 2,102 contracts. These calls lock in the price investors must pay for the brokerage stock in the next two months, so if it rallies they could easily double or triple in value.

The investment bank's shares rose 2.47% to $18.65 Tuesday and is up 23% in the last month. The stock gapped higher on Jan. 19 after earnings and revenue beat forecasts, but since then shares have been moving sideways.

The call-buying reflects a belief that shares will continue to run higher in the near term and comes amid improving sentiment in the financial sector. In addition, Morgan Stanley is reportedly the lead underwriter of Facebook's initial public offering.

Overall option volume in the name was more than twice its daily average, with calls outnumbering by more than 2 to 1.

Russell has no positions in MS.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MS $23.09 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports