Those calls lock in the price investors must pay to buy shares in the garbage-disposal company. They can generate major leverage in the event of a rally and double if the stock climbs just 10 percent in the next four months, but they will expire worthless if it doesn’t move.
Waste Management rose 1.44 percent to $32.30 yesterday. It peaked around $36 in mid-April and is now trying to trying to find support around $32.
Total option volume in Waste Management was 10 times greater than average in the session. Calls outnumbered puts by a bullish 15-to-1 ratio.
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David Russell is a reporter and writer for OptionMonster. Russell has no positions in Waste Management,