Cole Real Estate
(COLE) saw upside option activity last week and the bulls came back Thursday.
This time the traders were targeting the November 12.50 calls, paying 35 cents for 10,816 contracts, according to optionMONSTER's Heat Seeker tracking system. They also sold 5,408 November 15 calls for 5 cents5 to lower the cost of the purchases in exchange for capping potential gains.
Long calls lock in the price where the stock can be bought. So if the shares continue to climb, the value of the options can really spike on a percentage basis because they cost so little in the first place.
Cole shares rose 1.46% to $12.53 Thursday, an all-time closing high. The company, which owns more than 1,000 commercial properties, reports third-quarter results on Nov. 5.
More than 17,000 calls traded against just 20 puts, a reflection of the session's bullish bias. Total option volume was 26 times greater than average.
On Oct. 9, traders bought the March 12.50 calls for 58 cents.
Najarian has no positions in COLE.