Traders turned bullish on Pitney Bowes at the end of yesterday's session.
optionMONSTER's market scanner shows that 5,000 August 20 calls bought for $0.25 to $0.45 in the final hour of trading. This represents fresh buying, as open interest in the strike was a mere 50 contracts before the session began.
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)
PBI rose 0.32 percent to $18.60 yesterday but is down 12 percent in the last three months. The company, which has been reinventing itself as a provider of communications products and services, is scheduled to report earnings before the market opens on Aug. 2.
Overall option volume in the name was 11 times greater than average yesterday. Calls outnumbered puts by a bullish 47-to-1 ratio.
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