Bank of Montreal Draws Eager Call-Buyers

By Pete Najarian, co-founder of OptionMonster

NEW YORK ( OptionMonster) -- Traders are looking for upside in the Bank of Montreal ( BMO), which is less volatile and far more consistent than the big U.S. banks.

Option activity was strong early in Thursday's session as traders bought plenty of time for a move. The March 65 strike saw more than 20,000 calls trade, the bulk of them going for $1, according to OptionMonster's real-time tracking systems.

Those options lock in a $65 entry price on the Canadian bank anytime by expiration in mid-March. So if the shares continue to rally, those calls will provide a ton of leverage.

The stock leapt at the open and finished the session up 2.96% to $61.14. It has a nice dividend yield near 4.7%.

Almost 28,000 calls traded in the name versus fewer than 1,700 puts, reflecting the bullish sentiment. Total option volume was 38 times greater than average.

Najarian has no positions in BMO.

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.

More from Options

Let the Najarian Brothers Crash-Proof Your Portfolio

Let the Najarian Brothers Crash-Proof Your Portfolio

Let the Najarian Brothers Help You Generate Income With Options

Let the Najarian Brothers Help You Generate Income With Options

All Investors Can Trade Options, Just Ask the Najarian Brothers WATCH VIDEO

All Investors Can Trade Options, Just Ask the Najarian Brothers WATCH VIDEO

Learn Options Trading from the Najarian Brothers, the Best in the Business

Learn Options Trading from the Najarian Brothers, the Best in the Business

Call Options Score Big in Russell 2000

Call Options Score Big in Russell 2000