Options Traders Play Consumer Stock Rebound

Newell Rubbermaid is drawing substantial call trading as it continues to rebound from a fresh 52-week low reached a week ago.

NWL stock closed at $5.61 Friday, up some 7.7 percent on the day with heavy volume and more than 24 percent since its low of $4.51 on March 9. (Ticker reflects current share price.)

The options action was at the June 5 strike, where more than 5,400 calls traded against open interest of only 1,400 contracts, according to OptionMonster's tracking systems.

This may be a case of oversold conditions, as the stock remains 80 percent under its 52-week high of $24.08 even after its latest bounce. With brands including Lenox, Waterman, Parker, Graco, Aprica, and Calphalon, as well as Rubbermaid, NWL shares have been punished as consumers look for non-name brands or generic equivalents.

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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.