Investor Targets Monster Gains in Hansen Options… Again
by Option Review - June 28th, 2011 4:09 pm
Today’s tickers: HANS, SPRD, MR & APO
HANS - Hansen Natural Corp. – The maker of brand name energy drink Monster® and other beverages popped up on our scanners this morning due to heavy call option activity in the September contract. It looks like one investor is taking profits on a previously established position and extending bullish sentiment on the stock by rolling calls up to a higher strike price. We reported a similar strategy in Hansen Natural Corp. calls back on June 20. It’s possible the transaction observed this morning is the work of the same investor swooping in once again to harvest gains as shares in HANS extend a monster-rally. Hansen Natural Corp.’s shares increased as much as 2.2% today to secure a record high of $80.85. The stock has increased more than 112% in the past 52-weeks alone. Turning our attention back to options-land, it appears the trader sold 10,000 calls at the September $80 strike at a premium of $5.80 apiece. Open interest suggests the calls were originally purchased 5,000 contracts at a time, on June 16 and June 20, for an average premium of around $2.45 each. The sale of the calls for $5.80 a-pop today suggests the trader reeled in average net profits of $3.35 per contract. The bullish strategy on Hansen Natural Corp. seems to be working like a charm, and the investor responsible for the action shows no signs of fatigue. It looks like the trader picked up 10,000 fresh calls at the September $90 strike for an average premium of $2.35 per contract. The investor may eventually roll out of this position too, but if held to expiration, the bullish player stands ready to make money on the new stance if shares rally another 14.2% over today’s record high to exceed the effective breakeven price of $92.35. Hansen Natural Corp. reports second-quarter earnings after the final bell on August 4. Shares in the drink maker spiked roughly 11.5% following the company’s positive earnings surprise…