Traders are making a long-term bullish bet on Crown Holdings after the packaging products company gapped higher on its earnings release last week.
Crown closed yesterday down 0.78 percent to $25.44. The shares had plummeted on Jan. 22 after closing below their 50-day moving average but gapped back up last Tuesday on the strength of fourth-quarter earnings.
Yesterday's option activity was concentrated at the January 2011 22.50 contracts, where some 3,500 calls were bought in a span of seven minutes yesterday morning, according to . The volume, which included one block of 2,500 bought for $4.90, dwarfed the open interest of just 163 contracts at the strike.
The stock would need to gain at least 7.7 percent for those calls to turn a profit. Overall calls in the name outnumbered puts by nearly 24 to 1.
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Mike Yamamoto is an analyst and writer for .