By Mike Yamamoto of OptionMonster
NEW YORK -- Traders are apparently anticipating good numbers when Joy Global (JOY) reports earnings next week.
OptionMonster's tracking programs showed heavy buying in the March Weekly 63 calls that expire at the end of next week. More than 5,800 of the contracts traded with premiums rising from 23 cents to 52 cents in the final hour of Friday's session.
These are clearly new positions, as open interest in the strike was a mere 10 contracts at the beginning of the day. The long calls are looking for the stock to surge before they expire on March 7, the day after the mining-equipment company is scheduled to report earnings.
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Joy shares rose 0.23% on Friday to close at $56.73, continuing to trade in a range mostly between $52 and $59 that has been in place since last October. On Wednesday, the company declared a quarterly dividend of 17.5 cents a share to be paid on March 18 for shareholders as of March 4.
Total option volume in the name topped 17,000 contracts, more than six times its daily average for the last month. Overall calls outpaced puts by nearly 5 to 1, a reflection of the session's bullish sentiment.
Yamamoto has no positions in JOY.