By David Russell
J.B. Hunt Transport Services (JBHT) is pausing after a rally, and one investor is looking for the shares to get back on the road.
optionMONSTER's Heat Seeker tracking system detected the purchase of more than 2,400 April 45 calls against open interest of just 63 contracts. Premiums rose from $0.40 to $0.45 as the trades crossed.
JBHT rose 1.16 percent yesterday to close at $41.16. It climbed more than 30 percent between late August and early 2011 but fell despite issuing a strong earnings report on Jan. 28. The shares have been consolidating since then and appear to be finding support around $40, a level where they had peaked in 2008 before the market crashed (red line and arrow on chart at right).
Some chart watchers may consider that a bullish pattern and may look for the trucking stock to continue rallying into record territory.
The next scheduled event that could serve as a potential catalyst for JBHT is an appearance at the Raymond James 32nd Annual Institutional Investors Conference before the market opens on Monday.
Overall option volume in the stock was 13 times greater than average in yesterday's session.
(Chart courtesy of tradeMONSTER)