Bulls Pile In to Food Equipment Manufacturer
"Fast Money" Contributor
Manitowoc has pulled back after a giant move last month, luring buyers back into the name at these levels.
Traders bought more than 3,600 April 21 calls for $0.40 yesterday, compared with previous open interest of just 441 contracts. More than 6,000 options traded in the name overall, compared with a daily average around 2,100.
The stock closed yesterday down 0.53 percent to $18.79 after falling to $17.82 shortly after the open. Manitowoc engages in the manufacture of cranes and related products, plus food-service equipment.
Shares surged from below $14 in January to over $21 in February after a big gain in the food-service segment and comments by CEO Glen Tellock, who said the company started 2011 as a much stronger business. Now the bulls are coming back, and yesterday's call buyers are positioning for a return at least back to those $21 levels.
Calls outnumbered puts by 29 to 1, a further indication of the bullish sentiment on the name.
Najarian owns MTW calls.
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