Option Bulls Hope to Toast Gains in Beam
By: Pete Najarian | "Fast Money" Contributor
Beam
has been performing well this year, and yesterday the bulls stepped in.
The June calls were especially active as investors looked the stock to rise into late spring. The June 62.50s mostly traded $0.55 to $0.90, with more than 5,208 changing hands against open interest of just 20 contracts. The June 65 calls also traded more than 2,800 times.
Beam
Callslock in the price investors must pay for shares in the company, which sells branded distilled whiskeys and other spirits. These contracts can appreciate in a hurry if the stock makes even a small move.
For example, those June 62.50 calls ended yesterday's session at $1.45 — almost triple their opening value. The June 65s gained even more on a percentage basis, shooting up from $0.20 to $1.12.
Beam shares rose 2.71 percent to $57.51 yesterday. The company recently reaffirmed its earnings target for 2012, driven partly by sustained market-share gains in its industry-leading bourbon portfolio and strong initial reception for the latest innovations. Another catalyst was takeover chatter in the British press.
—Najarian has no positions in BEAM.
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Pete Najarianis a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money ” and co-founder ofOptionMonster.com .
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