By David Russell
America is going back to work, and the bulls are shopping for upside in Office Depot (NYSE:ODP).
optionMONSTER's Heat Seeker tracking system detected the purchase of 2,100 May 9 calls for $0.30 to $0.35 against open interest of 239 contracts. The overall options activity is bullish, with calls outnumbering puts by more than 100 to 1.
ODP rose 1.48 percent to $8.23 in morning trading. The office-supply store's results were better than expected the last time it reported earnings on Feb. 23. The recent positive economic data, including Friday's employment numbers and today's service sector report, could also be making traders bullish on the name.
ODP must rally at least 13 percent for the options purchased today to turn a profit.
The stock has spent the last two weeks consolidating above the $8 level after rallying more than 40 percent between early February and early March. The current price level roughly matches the area that has held the shares in check since the summer of 2008.
Today's call buyers may be expecting ODP to rip higher if it pushes through this resistance level. The next likely point of consolidation is about $10.60.
Overall options volume in the name is more than twice the average level so far today.
(Chart courtesy of tradeMONSTER)