Big Call Option Bet on ManpowerGroup (NYSE:MAN)

NYSE_MAN_sees_large_call_buying_in_July_85_calls

An unusual trader has placed some large bets on ManpowerGroup (MAN) early this morning right after the market opened.  The trader bought to open 1,000 July $85 calls at the ask for a price of $1.15.  This is a good sized bet on its own, however the trader came back in for more just after 11 am, buying another 979 Jul $85 calls at $1.30 this time.

ManpowerGroup (MAN) options are trading 15.3 times usual volume, so these buyers are clearly expecting some good news soon.

NYSE:MAN is currently trading at $83.46, down 21 cents on the day, so these investors expect the stock to jump nicely before the July expiration on these calls.

It could be that earnings have leaked on MAN, as they are set to announce Q2 results on July 21, 2014.  Another plausible catalyst would be an analyst upgrade and price target increase from one of the larger investment banks.  This is something we see every day.

There doesn’t appear to be any other pending catalysts, so one of the two explanations above is probably most likely.  The skilled labor market is tight in the U.S., so workforce solutions companies such as ManpowerGroup are probably seeing increases in their revenues and profits at times like this.

We’ve now seen a total of 3,400 Jul 85 calls trade on MAN so far today, likely the result of copycat traders like us who follow the smart money trades.

Here’s the 5 day chart on NYSE:MAN

 

NFX_large_options_buy_in_January_expirations NYSE_MAN_sees_large_call_buying_in_July_85_calls