Traders were filling their carts at Dollar General yesterday, looking for the discount retailer to rally.
OptionMonster's Depth Charge tracking system detected a surge of call buying in the stock, which has been working its way higher since the middle of last month. Early activity focused on the December 52.50 calls as buyers paid 50 cents. Premiums then rose and larger blocks followed for 60 cents to 80 cents.
The December 50 calls also saw a heavy buying, including a block of 20,000 contracts that went for $1.50. Volume was more than nine times the open interest in each strike at the start of the day, clearly indicating new activity.