NEW YORK -- AGCO (AGCO - Get Report) makes agricultural machinery, and traders are harvesting profits in the name. 

OptionMonster's Heat Seeker tracking system lit up early Monday with buying in the December 45 calls for 30 cents. The stock pushed higher as the day progressed, and those contracts soon doubled to 65 cents. 

The trade worked because long calls lock in the price where the stock can be purchased, and their cheap price helps investors manage risk while ensuring that they won't miss a rally. They can also generate huge leverage on a%age basis, as we saw Monday. 

AGCO ended the session up 4.01% to $43.85 but is down 26% so far this year. The stock has spent the last two months trying to bounce from its lowest level in more than two years. 

Almost 13,000 AGCO contracts changed hands overall in the December 45s, dwarfing previous open interest of 1,353. Overall option volume in the name was 27 times greater than average, with calls accounting for a bullish 92% of the total. 

-- Written by David Russell of  OptionMonster 

Russell has no positions in AGCO.

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.