Pitney Bowes Rocks Higher With Options

NYSE Traders
Adam Jeffery | CNBC

Pitney Bowes has performed very well this year, and buyers were active last week.

OptionMonster's tracking systems showed heavy activity in the July 15 calls and the July 17 calls. A trader apparently sold 15,000 of the 15s for $1.40 to close a winning position, then bought twice as many of the 17s for $0.50.

These calls lock in the price where shares can be purchased in the company, which provides software, hardware, and services to enable physical and digital communications. The trade is looking for further upside in the stock, which has a large short interest and a high dividend yield.

Pitney Bowes rose 5.51 percent to $15.90 on Friday. The stock well outperformed the S&P 500 for several months.

Total option volume in the name surpassed 73,000, compared with barely 3,000 contracts in a typical session. The overwhelming majority—more than 67,000—were calls, reflecting the bullish sentiment.

—By CNBC Contributor Pete Najarian

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian has no positions in PBI.