Bulls Tune In to Viacom

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Viacom has been going straight up along with other media names, and the bulls expect more gains in the next month.

OptionMonster's tracking programs detected the purchase of about 12,000 May 70 calls yesterday, with the largest block priced for $0.70. This is clearly fresh buying, as the volume dwarfed the strike's open interest of just 337 contracts before the session began.

Calls provide inexpensive upside exposure because they lock in the price where shares can be bought. They can generate significant leverage if the stock climbs, but will expire worthless if it doesn't in the next month.

Viacom fell 3.73 percent to $64.02 yesterday, but is up 21 percent so far this year. The company, whose brands include MTV, Comedy Central, and VH1, reports earnings on May 1.

Total option volume was nine times greater than average in the stock on Monday, with calls outnumberingputs by a bullish 27 to 1.

—By CNBC Contributor David Russell

Additional News: Viacom's Debt Offering: Faber Report

Additional Views: Momentum Bulls Are Shopping at Tiffany: Russell

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