Financial Bulls Bank With State Street

Brent Lewin | Bloomberg | Getty Images

State Street Financial Center building, which houses the company's headquarters, in Boston, Massachusetts.

State Street has been rallying along with other financials, and the bulls kept piling into the investment-management firm yesterday.

OptionMonster's tracking programs detected the purchase of more than 5,000 January 62.50 calls for $3.25 to $3.35. Volume was more than 60 times open interest at the strike, indicating that new positions were initiated.

These calls lock in the price where investors can buy stock. Because they cost only a fraction of the share price, the options can generate significant leverage on a percentage basis if State Street stock climbs over the course of the year.

For example, State Street was trading for about $59.72, when those calls were purchased. It then pushed higher and ended the session up 2.14 percent at $60.53. Those January 62.50 calls, meanwhile, appreciated more than 10 percent to $3.65 in the same period.

Total option volume was five times greater than average in the session, with calls accounting for a bullish 79 percent of the total.

—By CNBC Contributor David Russell

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Additional Views: Is Talisman Lucky for the Bulls?: Russell

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David Russell is a reporter and writer for OptionMonster.Russell has no positions in STT.

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