This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bulls Play for More Gains in Mattel

By David Russell of OptionMonster

NEW YORK -- Mattel (MAT) has been running, and the bulls came back to the toy maker Monday.

OptionMonster's tracking systems detected heavy buying in the February 48 calls early for $1.10 to $1.25. Volume mounted at the strike and surpassed 6,400 by the end of the session, dwarfing previous open interest of just 75 contracts.

These calls lock in the price where a stock can be bought, letting investors cheaply position for a breakout with the shares near their all-time highs from May. The contracts can also generate significant leverage because of their low entry cost but will expire worthless if shares remain below $48 through mid-February.

Must Read: Bulls Want to Fly Hawaiian

Mattel's shares rose 1.77% to $47.82 yesterday and are up 16% since bouncing at key support around $40 in early October. The last earnings report also beat expectations thanks to strong sales of Barbie and Monster High dolls.

While the company hasn't yet announced the date of its next quarterly report, last year's calendar suggests it will occur by early February. So those February 48s could benefit from another strong release.

Overall option volume was 16 times greater than average in the session, with calls accounting for a bullish 90% of the total.

Russell has no positions in MAT.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $110.37 -1.75%
FB $88.15 -1.94%
GOOG $606.25 -1.32%
TSLA $245.57 -0.86%
YHOO $32.54 2.42%

Markets

Chart of I:DJI
DOW 16,374.76 +23.38 0.14%
S&P 500 1,951.13 +2.27 0.12%
NASDAQ 4,733.4970 -16.4820 -0.35%

Free Reports