This Day On The Street
Continue to site
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 Put Stamp on Pitney Bowes

By David Russell of OptionMonster

NEW YORK -- Pitney Bowes (PBI) has broken a long-term resistance, and option traders are betting that it will keep ripping higher.

OptionMonster's tracking programs detected the purchase of 5,000 January 30 calls for $1.80 and the sale of 5,000 January 25 calls for $3.80 on Friday. Volume was below open interest at the lower strike, which suggests that a long position was closed and rolled to the higher strike.

Long calls lock in the price where a stock can be bought, letting investors cheaply position for gains while limiting the amount of capital at risk. They can also generate significant leverage if a rally ensues. Rolling to the January 30s allows the trader to receive a credit of $2 while keeping him exposed to further gains.

Must Read: Energy Bulls Clean Up in Anadarko

Pitney Bowes' shares fell 0.22% to $26.98 on Friday and are pushing above their previous highs from 2010 and 2011. Traditionally a maker of snail-mail postage meters, the company has been reinventing itself as a provider of communications products and services. The stock has more than doubled since bottoming near $10 early last year.

Overall option volume was eight times greater than average in the session, with calls accounting for a bullish three-quarters of the total.

Russell has no positions in PBI.

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $118.00 1.10%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports