Traders were looking for Staples to ratchet back up after the office-supply retailer fell close to its 52-week lows yesterday.
SPLS opened near the lows of the session but ended up gaining 2.32 percent to close at $16.32. Option activity picked up as the price climbed, and several large blocks of the August 16 calls were bought for $0.50, followed by more at $0.60 and then $0.65.
More than 11,000 options traded overall in the company, but those August calls were the most aggressive strike on the board, with almost 8,000 trading against open interest of 2,481 contracts. Total calls in the name outnumbered puts by almost 4 to 1 yesterday, which reflects the bullish tone.
Staples is scheduled to report earnings results on Aug. 17.
—Najarian has no positions in SPLS.
More Options Tips from Pete Najarian
Options Trading School: