Bulls want to fly with Textron

Wall Street NYSE Bull
Adam Jeffery | CNBC

The bulls are betting that Textron is ready for takeoff.

OptionMonster's tracking systems detected the purchase of almost 4,400 December 31 calls yesterday, most of which priced for $1.20 to $1.33. Volume was almost 39 times the previous open interest at the strike, indicating that new long positions were initiated.

These long calls lock in the price where shares can be purchased in the maker of Cessna planes and Bell helicopters. Investors use the options as a relatively inexpensive way to profit from gains in the stock while limiting the amount of capital at risk if it tanks.

Textron rose 0.87 percent to $28.98 yesterday. It's lagged the broader market since the spring, hammered by two weak earnings reports. But the shares have spent the last month consolidating above their 200-day moving average, which could make some chart watchers think that they're ready to rally. Other transport-related stocks have also been strong amid improving economic sentiment.

Total option volume in Textron was five times greater than average in the session, with calls outnumbering puts by a bullish 16-to-1 ratio.

—By CNBC Contributor David Russell

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