Expeditors International of Washington is attracting upside option activity as shares try to recover from a steep selloff yesterday.
More than 5,100 May 40 calls were purchased this morning as premiums rose from $1.05 to $1.30 in 15 minutes, according to optionMONSTER's Heat Seeker tracking system. The volume, which included a large print of 3,011, was more than 3 times higher than the strike's open interest of 1,519 contracts before the session began and therefore represents new activity.
The buying coincided with bullish action in C.H. Robinson Worldwide, another name in the transportation-logistics sector, as noted on our InsideOptions Pro service early today.
EXPD is up 2.78 percent this morning to $38.09. The stock had been trading near $44 a month ago but gapped down after a weak fourth-quarter report yesterday and closed at $37.06, breaking below its 100- and 200-day moving averages.
Today's long calls are looking for EXPD to gain roughly 11 percent or more by expiration in mid-May. The options could be sold earlier at a profit if their value rises with any rally before then, but they will expire worthless if the stock remains below the $40 strike price. (See our Education section)
Total option volume in the name is 7,689 contracts so far, already 84 percent higher than its full-session average for the last month. Only 390 puts have traded, a reflection of the session's bullish sentiment.
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