Lincoln National reports earnings after the bell today, and the bulls are looking for upside.
OptionMonster's tracking programdetected heavy buying of the November 26 calls, with institutional-sized trades for $0.95 to $1.05. Volume in the strike rose to 5,578 against open interest of 4,938 contracts.
Lincoln National fell 1.46 percent to $23.56 yesterday. The annuity company has been falling since early October after rallying more than fivefold over the previous seven months.
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The shares must climb about 14 percent by November expiration for the calls to turn a profit. The investor may be betting a good earnings report today will drive the stock back near its recent high of $28.10.
The company's adjusted earnings beat analysts' forecasts the last time it issued results on July 29.
Other investors sold the January 29 calls for $1 early in the session, following active buying of the shares. The activity probably resulted from investors selling covered calls to earn premium and reduce their cost basis in the stock. The calls changed hands 3,070 times, more than five times open interest.
Overall options volume was almost twice the average level yesterday, and calls accounted for 88 percent of the trades.
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David Russell is a reporter and writer for OptionMonster.