NEW YORK -- The bulls are raising their glasses to Anheuser-Busch InBev ( BUD) .
OptionMonster's Heat Seeker system detected the purchase of more than 10,000 March 130 calls Wednesday, most of which priced for 80 cents. Volume was more than 100 times the previous open interest in the strike, which indicates that new money was put to work.
Long calls lock in the price where investors can buy a stock, and their cheap cost limits risk because only the options' premium can be lost in a selloff. The contracts can also result in significant leverage if shares move higher.
Anheuser-Busch rose early Wednesday but reversed with the broader market and ended the session down 0.27% to $113.33. The brewer of beers including Budweiser, Stella Artois, and Beck's has been trending steadily higher, and Wednesday's calls are looking for that move to continue through the winter.
Total option volume in the name was 23 times greater than average Wednesday, with calls outnumbering puts by more than more than 75 to 1.
-- Written by David Russell of OptionMonster
Russell has no positions in BUD.