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Jobs Jump? Options Betting on Monster Worldwide Rally

Trading took a bullish turn in Monster Worldwide yesterday after a key labor report spurred optimism about U.S. hiring.

Buyers snapped up calls at the July 12.50 and August 12.50 strikes on the job-advertising stock, which has lost more than a quarter of its value in the last three months. The July contracts traded 6,939 times, mostly for $0.15 and $0.20, while the August calls changed hands 3,486 times for $0.60. Volume was more than twice open interest in both strikes.

Monster Worldwide rose 2.77 percent to $11.86 yesterday after the Labor Department reported that initial jobless claims fell more than expected last week. The reading, considered a leading indicator on the broader jobs market, contrasted with disappointing June data last week.

The company reported a narrower-than-expected loss on April 29, but lowered its full-year revenue guidance. It hasn't yet scheduled the date for its next financial release, but it will probably be late this month.

Yesterday's call buyers need the stock to rally at least 7 percent by July expiration and 10 percent by August expiration for their positions to turn a profit.

The trading pushed total options volume in the name to 12 times greater than average, with calls outnumbering puts by a bullish 142 to 1.

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David Russell is a reporter and writer for OptionMonster.

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