Lowe's can be a great derivative play on the housing market, and the bulls are sticking with the name at all-time highs.
OptionMonster's tracking systems show that a trader rolled a long position in the July 43 calls up to the August 44 strike. He or she sold the 43s for $1.07 and bought the 44s for $1.04, taking in a small credit on the trade while repositioning for further gains in options that expire a month later. About 2,200 contracts changed hands in each.
These calls lock in the price where shares can be purchased in the home-improvement retailer, letting investors cheaply position for gains in the stock. They can generate major leverage in a rally.