Investor s are extending bullish positions in Wyndham Worldwide for the third time in less than a month.
optionMONSTER's monitoring system detected the sale of 3,000 March 75 calls for $1.50 and the purchase of 3,000 March 77.50 calls for $0.60 yesterday. Volume was below open interest in the lower contracts, indicating that bullish position was rolled to a higher strike.
This follows bullish call rolls in the name on Feb. 26 and Feb. 9 , both resulting in winning trades for subscribers of our InsideOptions Pro service.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
WYN rose 0.48 percent to $75.03 yesterday and is up 15 percent in the last month. The hotel operator reported bullish quarterly results on Feb. 9.
Overall option volume in the name was 3 times greater than average yesterday. Calls outnumbered puts by a bullish 83-to-1 ratio.
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