NEW YORK -- Bullish option traders are putting money to work in Monster Worldwide (MWW) .
OptionMonster's Heat Seeker system detected the purchase of about 1,900 February 5 calls for 25 cents on Friday. The volume was more than 10 times the previous open interest, which indicates that new money was put to work.
Long calls lock in the price where investors can buy a stock, allowing them to profit from a rally at limited cost. The options can also generate significant leverage if shares move in the right direction.
Monster was unchanged Friday $4.75 and has been working its way back from an all-time low beneath $3.50 in October. The online job-listing stock has big short interest and trades at less than book value. It's also been consolidating above its 50-day moving average amid an improving employment backdrop.
Total option volume was nine times greater than average in the session, with calls outnumbering puts by more than 100 to 1.
-- Written by David Russell of OptionMonster