Shaw Call-Buyers Light Up July Options
By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Shaw Group (SHAW) recently got a big contract win, and on Monday buyers lit up the July options.
The July 34 calls saw strong activity, with investors paying 69 cents to 75 cents. More than 4,000 of those contracts changed hands against open interest of 100 contracts -- not off the charts, but still heavy for a name that usually trades fewer than 1,300 contracts a day.
Those calls lock in the price investors must pay to buy shares, so they can provide a lot of leverage if the construction company rallies into the summer. But if the stock doesn't move enough, they could expire worthless.Shaw closed at $30.27 Monday, up 0.97%. Last week it received notice from South Carolina Electric & Gas to proceed on its engineering, procurement, and construction contract for two Westinghouse AP1000 nuclear power units and related facilities. More than 7,500 calls traded in the name Monday vs. just 104 puts, a reflection of the session's bullish sentiment. Najarian has no positions in SHAW.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV