Mixed Call Activity on Brunswick (BC)
June 09, 2010 2:49 PM
Shares of Brunswick Corp. (NYSE: BC) are higher on the session by 6.23%, currently trading at $15.69. The stock retracted sharply in May and is now hovering near the 200-day moving average.
Options traders are favoring calls today, though the sentiment is mixed. A long call position was liquidated on the June $12.50 strike, where 1,024 contracts traded on open interest of 1,415 contracts. But, 257 of the June $17.50 calls were bought on open interest of 50 contracts and the December $12.50 call was purchased 331 times on no open interest.
At best this signals weakness in the near term with some bullishness further out. Traders should wait for the stock to fall further before initiating any long position in the name, as it seems fairly valued at the present time.
Brunswick Corporation is a global manufacturer and marketer of recreation products, including marine engines, boats, fitness equipment and bowling and billiards equipment. Brunswick's engine products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems, and marine parts and accessories.
