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

A Quick Move for Kimberly-Clark?

By David Russell of OptionMonster

NEW YORK --  Kimberly-Clark (KMB) has traded in a tight range, and now the bulls are looking for a quick acceleration higher. (KMB)

OptionMonster's tracking systems on Friday detected the purchase of 2,200 Weekly 112 calls, which had no open interest when the session began. The initial buyers paid mostly 40 cents and 45 cents for those contracts, which expire at the end of this week, but the premiums ratcheted higher as the shares rose.
Long calls lock in the price where investors can buy a stock, which lets them benefit from a rally without the expense of owning shares. Because of their comparatively low cost, the contracts can generate significant leverage from even a modest gain. And that's exactly what happened on Friday because those Weekly 112s almost doubled to 75 cents by the close of trading.
Kimberly-Clark shares rose 0.98% to $112.35 on Friday. The stock was parked around $110 since February but rose at the end of last week while holding above last year's highs.
Overall option volume in the name was more than six times greater than average on Friday, with calls accounting for bullish 84% of the total.
Colgate-Palmolive (CL)
Russell has no positions in KMB.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports