OptionMonster's tracking programs detected the purchase of about 6,900 January 14 calls for 30 cents and 35 cents. Volume was more than 30 times the previous open interest in the strike, which indicates that new money was put to work.
These long calls lock in the price where a stock can be bought, letting investors position for a rally at limited cost. They can generate significant leverage if shares move in the right direction but can also lose value on a selloff.
Ericsson rose 1.45% to $12.62 on Thursday. The Stockholm-based telecom-equipment company gapped higher following its last quarterly report in July, pulled back, and then bounced at its 50-day moving average. Thursday's call buyers are looking for more gains heading into early next year and are targeting the same $14 area where the stock peaked last September.Overall option volume in the name was 28 times greater than average in the session, with calls accounting for a bullish 96% of the total. Russell has no positions in ERIC.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV