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Imax Keeps Climbing As Bulls Pack the House

Imax continues to work its way higher, and bulls are still packing the house.

OptionMonster's proprietary systems detected heavy call buying in the movie stock. The March 15 options were the most active strike, changing hands more than 5,000 times against open interest of 115 contracts. Premiums increased from $0.45 early in the session to as high as $0.85 as the shares climbed.

IMAX rose 4.51 percent to $12.29 in morning trading and has more than quadrupled in the last year.

The shares have been rallying as the company transforms itself from a one-off provider of expensive cameras into a digital-based technology business name with a global footprint. It's been rebuilding its balance sheet and last quarter turned to a positive book value for the first time in at least three years.

The stock needs to climb about 25 percent by expiration for the March calls to turn a profit.

Large purchases were also detected in the January 12.50 calls for $0.65 to $0.85. Volume surged to 1,792 contracts, almost six times open interest in the strike.

Overall options volume in IMAX is 12 times greater than average today. Calls account for 93 percent of the activity.

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David Russell is a reporter and writer for OptionMonster.

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