Rayonier cratered late last year, but now the bulls are back.
optionMONSTER's Heat Seeker monitoring program detected the purchase of almost 2,750 January 50 calls for $1 on Friday. Volume was more than 15 times previous open interest at the strike, which indicates that new money was put to work.
Long calls lock in the price where investors can buy a stock, letting them position for a rally cheaply and with limited risk. The contracts can also generate significant leverage. (See our Education section.)
RYN rose 1.4 percent to $45.68 on Friday. The wood-products company traded in the mid-$50s through October but then gapped lower on a poor quarterly report. Results have improved more recently, and the shares have held their ground. Management also plans to spin off the company's cellulose business around the middle of the year, which some investors may consider a positive catalyst.
Total option volume in Rayonier was 14 times greater than average in the session. Overall calls outnumbered puts by a bullish 58-to-1 ratio, according to the Heat Seeker.
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