NEW YORK -- Hershey Foods(HSY) - Get Report has been ripping higher, and option traders are looking for more gains. 

OptionMonster's Heat Seeker tracking program detected the purchase of about 6,400 February 110 calls Thursday, most of which priced for $1.20. Volume was 19 times open interest at the strike, which indicates that new money was put to work. 

Long calls cheaply lock in the price where traders can buy a stock. Their low cost helps manage risk, as only the cost of the options can be lost if shares drop. 

Hershey rose 2.03% to $107.17 on Thursday and has been accelerating higher since the summer. Investors shrugged off a weak earnings report during that time, putting the candy maker within striking distance of its all-time highs in February. 

Total option volume in Hershey was 18 times greater than average in the session, with calls outnumbering puts by more than 12 to 1. 

-- Written by David Russell of  OptionMonster

Russell has no positions in HSY

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