Jon "DRJ" Najarian, co-founder of OptionMonster

Newell Rubbermaid ( NWL) is drawing substantial call trading as it continues to rebound from a 52-week low reached a week ago.

The stock closed at $5.61 on Friday, up 7.7% on the day with heavy volume and more than 24% since its low of $4.51 on March 9. The options action was at the June 5 strike, in which more than 5,400 calls traded against open interest of only 1,400 contracts, according to OptionMonster's tracking systems.

This may be a case of oversold conditions, as the stock remains 80% under its 52-week high of $24.08 even after its latest bounce. With brands including Lenox, Waterman, Parker, Graco, Aprica, and Calphalon, as well as Rubbermaid, the company has seen its stock punished as consumers look for non-name brands or generic equivalents.
At the time of publication, Najarian had no positions in Newell Rubbermaid.

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