NEW YORK -- The trucking space was in play for the bulls Thursday, with upside option trades hitting Swift Transportation (SWFT), Con-Way (CNW) and Arkansas Best (ABFS).
OptionMonster's tracking systems flagged Con-Way first as more than 2,500 November 42.50 calls were purchased, mostly for $2.76. Buyers piled into Swift's November 20 calls around the same time, with 3,500 contracts trading for $1.05 to $1.20. Volume easily surpassed open interest at both strikes, showing that new money was put to work.
A little while later, Arkansas Best lit up our scanners with action in its November 25 calls. More than 3,000 of those contracts were bought, most of which priced for 85 cents.
Calls lock in the price where shares can be purchased, letting investors cheaply position for a rallies while limiting the amount of capital at risk if the stock drops.
Con-Way rose 3.29% to $43.92, Swift climbed 2.11% to $19.80, and Arkansas Best gained 3.15% to $22.30. All three had big rallies earlier in the year but have been stagnating more recently. Con-Way and Swift are trying to run again after testing their 50-day moving averages, while Arkansas Best is attempting to break through its 100-day moving average.
Swift reports earnings on Oct. 23, Con-Way follows on Oct. 31, and Arkansas Best issues results on Nov. 11.
Total option volume was more than six times greater than average in all three companies. Calls outnumbered puts by more than 10 to 1 in all three as well.
Russell has no positions in any of the stocks mentioned.