Bulls Hit the Road WithTruckers

 
 
By David Russell of OptionMonster
 
NEW YORK -- The trucking space was in play for the bulls Thursday, with upside option trades hitting Swift Transportation (SWFT), Con-Way (CNWand Arkansas Best (ABFS).
 
OptionMonster's tracking systems flagged Con-Way first as more than 2,500 November 42.50 calls were purchased, mostly for $2.76. Buyers piled into Swift's November 20 calls around the same time, with 3,500 contracts trading for $1.05 to $1.20. Volume easily surpassed open interest at both strikes, showing that new money was put to work.
 
A little while later, Arkansas Best lit up our scanners with action in its November 25 calls. More than 3,000 of those contracts were bought, most of which priced for 85 cents.
 
Calls lock in the price where shares can be purchased, letting investors cheaply position for a rallies while limiting the amount of capital at risk if the stock drops.
 
Con-Way rose 3.29% to $43.92, Swift climbed 2.11% to $19.80, and Arkansas Best gained 3.15% to $22.30. All three had big rallies earlier in the year but have been stagnating more recently. Con-Way and Swift are trying to run again after testing their 50-day moving averages, while Arkansas Best is attempting to break through its 100-day moving average.
 
Swift reports earnings on Oct. 23, Con-Way follows on Oct. 31, and Arkansas Best issues results on Nov. 11.
 
Total option volume was more than six times greater than average in all three companies. Calls outnumbered puts by more than 10 to 1 in all three as well.
 
Russell has no positions in any of the stocks mentioned.

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

Dual-Class Voting Structures Spur Growing Revolt

Wall Street Deflates in Final Minutes After Choppy Start to Week

Closing Bell: Needham Backs Amazon Growth; Stocks Retreat From Highs

Swift Transportation Stock Surging on Knight Merger

Stocks Trade Higher as Oil Gains Lift Energy Sector