By David Russell, reporter at OptionMonster
NEW YORK -- Sealed Air (SEE) has been rocking since August, and the bulls apparently think that it will keep on rolling.
OptionMonster's real-time scanners detected the purchase of 5,100 January 20 calls late in Friday's session for $3.60 and $3.70 in volume that dwarfed the strike's previous open interest of just 137 contracts. Sealed Air's shares immediately jolted higher and ended the session up 0.77% to $22.38.
These calls lock in the price where investors can buy shares. That will provide significant leverage if the bubble-wrap maker continues to climb this year, but even a relatively small decline could erase all their value.Sealed Air has gone nowhere for more than a decade and remains far below its peaks from two years ago. But results have been improving in recent quarters, especially after the company divested businesses and took steps to improve profitability. Total option volume was 11 times greater than average in the name on Friday. Calls outnumbered puts by a bullish 81-to-1 ratio. Russell has no positions in SEE.
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