Pitney Bowes Rocks Higher With Options

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- Pitney Bowes ( PBI) has performed very well this year, and buyers were active last week.

OptionMonster's tracking systems showed heavy activity in the July 15 calls and the July 17 calls. A trader apparently sold 15,000 of the 15s for $1.40 to close a winning position, then bought twice as many of the 17s for 50 cents.

These calls lock in the price where shares can be purchased in the company, which provides software, hardware, and services to enable physical and digital communications. The trade is looking for further upside in the stock, which has a large short interest and a high dividend yield.

The shares rose 5.51% to $15.90 on Friday. The stock has well outperformed the S&P 500 for several months.

Total option volume in the name surpassed 73,000, compared with barely 3,000 contracts in a typical session. The overwhelming majority -- more than 67,000 -- were calls, reflecting the bullish sentiment.

Najarian has no positions in PBI.
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.

If you liked this article you might like

Big Pharma and the Sellers of Its Products Now Have a Problem

Big Pharma and the Sellers of Its Products Now Have a Problem

Earnings Season Guessing Games: Cramer's 'Mad Money' Recap (Friday 1/19/18)

Earnings Season Guessing Games: Cramer's 'Mad Money' Recap (Friday 1/19/18)

JetBlue, Southwest, Mondelez International: 'Mad Money' Lightning Round

JetBlue, Southwest, Mondelez International: 'Mad Money' Lightning Round

Germany's Market Hits Record and Wall Street May Follow as Stocks Roar

Germany's Market Hits Record and Wall Street May Follow as Stocks Roar

The Worm Has Obviously Turned: Market Recon

The Worm Has Obviously Turned: Market Recon