UPS (UPS, news, chart) calls are seeing some interest late in the day. Shares are trading down $1.26 to $60.14 after record crude oil priced derailed the transport sector. Crude was recently trading up $5.45 to $140 a barrel. The Dow Jones Transportation Average is down 147 points, or 2.8 percent, and testing a key support level near 4,900. Yet sentiment towards UPS is suprisingly bullish. Buying interest has recently picked up in the July 65 and 75 calls. The 65s are the most actives, with almost 16,000 contracts traded and 82 percent hitting offerside. 34,000 calls have traded in all, compared to 10,000 puts. The put to call ratio is down to .31, compared to a 22-day average of .71.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.