By David Russell
Textron (NYSE:TXT) has broken above resistance, and the bulls are looking for a long-term ascent.
optionMONSTER's Heat Seeker tracking system detected the purchase of 10,000 January 2013 35 calls, most of which priced for $2.45 and $2.53. There was no existing open interest in the strike when the session opened.
TXT is up 1.16 percent to $26.60 in late morning trading and is up 28 percent in the last three months. In mid-January, the aerospace stock pushed through the $25.40 level where it peaked last April and since then has been consolidating those gains.
Its last earnings report on Jan. 26 was better than expected, though guidance was below analyst expectations. The company's aircraft include Bell helicopters and Cessna airplanes.
Today's call buying reflects a belief the stock will continuing climbing over the next 24 months. It follows shorter-term bullishness last month.
Overall options volume in TXT was is triple the daily average, with calls accounting for a bullish 99 percent of the activity, according to Heat Seeker.