PG – The Procter & Gamble Company – Options investors are augmenting bullish stances on the global provider of branded consumer packaged goods today with shares of the underlying stock inching 0.25% higher to stand at $61.91 by 12:25 pm (ET). It looks like bullish players expecting PG’s shares to rally significantly by expiration purchased some 18,100 calls at the August $65 strike for an average premium of $0.22 apiece back on Thursday July 8, 2010. Today, options optimists continued this trend by picking up approximately 16,500 calls at the August $65 strike for an average premium of $0.25 per contract. Investors buying the August $65 strike calls today are poised to profit should PG’s shares surge 5.40%, surpass the current 52-week high on the stock at $64.58, and finally trade above the average breakeven price of $65.25 by expiration day next month. The increase in investor demand for call options on the stock lifted Proctor & Gamble’s overall reading of options implied volatility 4.1% to 18.33% as of 12:30 pm (ET).
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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