NEW YORK -- Bullish option activity was heavy in Monster Worldwide on Tuesday and traders cleaned up in a hurry.
OptionMonster's tracking programs detected the strong buying in the March 7 calls, with large blocks pricing for 25 cents late in the morning. A quick 3,000 crossed initially in volume below previous open interest of just 534 contracts, indicating that new money was put to work.
These calls lock in the price where a stock can be purchased, letting investors cheaply position for a rally. And that's exactly what happened in the online employment agency Tuesday.
The stock ripped higher in the afternoon, at one point trading up almost 10%. But that move was nothing compared with the calls, which more than doubled to 60 cents.
The company trades for less than book value and has short interest at about 13% of the float. Management recently said business was stabilizing in North America and it's been expanding in Asia.
Monster Worldwide's shares closed Tuesday's session up 4.22% at $6.18. Total option volume was 35 times greater than average in the session, with calls outnumbering puts by more than 40 to 1.