Swift Transportation rallied Friday after reporting quarterly results, but traders apparently believe that further gains will be limited.
optionMONSTER's market scanners show that about 3,500 June 19 calls were sold for $1.02 to $1.20 on Friday. This represents new positions, as open interest in the strike was just 42 contracts before the session began.
Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief upside will be limited through expiration. (See our Education section)
SWFT rose 7.78 percent to $18.83 on Friday after earnings beat estimates. The trucking company is up 32 percent in the last three months.
Overall option volume in the name was twice its daily average on Friday.
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