By David Russell, reporter at OptionMonster
NEW YORK -- The bulls are betting that Select Comfort (SCSS) is getting its mojo back.
The mattress maker was a monster stock between 2009 and 2012, rocketing from under $1 to over $35. It then dropped for the next year but has been working its way higher since April.
Upside option activity in the name crossed our screens Wednesday. OptionMonster's tracking systems detected the purchase of some 3,700 September 25 calls, most of which priced for $1.60. Volume was almost 19 times higher than the strike's previous open interest, indicating that new positions were initiated.These calls lock in the price where the stock can be bought, which gives them potentially significant leverage in a rally. For example, Select Comfort rose after the options hit Wednesday, driving the calls up to $2.15 at one point while the stock ended the session up 4.69% to $23.46. Total option volume was 11 times greater than average in the name, with calls outnumbering puts by a bullish 29-to-1 ratio. Russell has no positions in SCSS.