Waste Management, Inc. (WM) is a waste management service provider in North America. The company’s stock is currently trading around $45.40 in a 52 week range of $30.92-$45.48. The company’s stock has been outperforming the market adding nearly 35% to share prices year to date. Options traders are betting that this upside will continue as we have seen some very bullish flows in WM today. Earlier in today’s session a trader bought 1,000 Apr 47 calls for $0.90. This order comes on the back of a large put seller from earlier this morning when a trader sold 2,222 Dec 45 puts for $0.65. These are both bullish orders that represent volume 3.2 times the average daily option volume in WM. The WM chart looks bullish as well. Shares of WM are trading well above the Ichimoku cloud and the future cloud is sloping up and outward indicating there could be more upside in store for WM. We believe that the technical coupled with the bullish unusual option activity in WM provides us with a signal for a long stock swing trade.
Trade: Buying WM stock a t $45.40 with a stop at $44.40.
Risk: $1.00 per share
Target #1: $45.90
Target #2: $46.40
Target #3: $47.40
