Is Office Depot Ready for Liftoff?

Office Depot
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Some traders think that Office Depot is ready for blastoff.

OptionMonster's monitoring programs detected the purchase of some 2,400 June 4.50 calls for $0.10. Volume was more than 60 times previous open interest, indicating that new positions were initiated.

Calls lock in the price where shares can be purchased in the office-supply retailer. That can provide significant leverage in a rally, while limiting the amount of capital at risk.

Office Depot shares rose 0.94 percent to $4.31 on Friday. It rallied hard late last year, pulled back and has been following its 100-day moving average back higher in the last month. That could make some momentum traders think that it will continue rising in coming weeks.

Total option volume was slightly above average in the name, with calls outnumbering puts by 46 to 1. Rival OfficeMax also had bullish activity the previous week.

—By CNBC Contributor David Russell

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