Traders are looking for Altria to rally.
optionMONSTER's Heat Seeker monitoring system detected the purchase of 5,700 December 60 calls in the tobacco company for $0.19 to $0.30. Volume surpassed open interest of 2,839 contracts, an indication new money was put to work.
Calls fix the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. (See our Coaching section.) Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction.
MO fell 0.57 percent to $57.13 in afternoon trading but is up 14 percent in the last month. Its next quarterly results are estimated for pre-market hours on Jan. 28.
Overall option volume was twice the daily average. Calls outnumbered puts by a bullish 3-to-1 ratio.
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