This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Traders Look for Lift in Manitowoc

By Mike Yamamoto of  OptionMonster

NEW YORK -- Option traders are betting that crane manufacturer Manitowoc (MTW) will ascend to a key level in coming weeks. 

Nearly 12,000 October 30 calls traded in a heavy buying pattern on Friday as premiums rose from 70 cents to $1, according to OptionMonster's tracking systems. These are clearly new positions, as open interest in the strike was just 190 contracts at the beginning of the session. 

These long calls lock in the price where the stock can be purchased through mid-October no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will expire worthless if shares remain below $30. 

Manitowoc gapped down from that $30 level after its earnings report on July 30 but held support at its 200-day moving average around $26 and has been drifting higher since. The calls bought on Friday are looking for the stock to fill that gap and reclaim its 50-day moving average, where it traded before the recent fall. 

Shares gained 3.19% on Friday to close at $29.42. OptionMonster co-founder Jon "DRJ" Najarian cited the name on CNBC's "Halftime Report" on Friday.

Total option volume in Manitowoc reached 16,500 contracts, compared to a daily average of just 855 for the last month. Overall calls outnumbered puts by a highly bullish 23-to-1 ratio. 

Najarian is long MTW; Yamamoto has no positions in the name.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
AAPL $124.33 -0.08%
FB $81.64 -0.70%
GOOG $544.95 -0.56%
TSLA $187.39 -0.73%
YHOO $44.25 -0.42%

Markets

DOW 17,715.63 -60.49 -0.34%
S&P 500 2,060.16 -7.73 -0.37%
NASDAQ 4,873.0360 -27.8490 -0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters