Option bulls pile into waste management

Landfill D'Arcy Norman Traders have been selling Waste Management, but one man’s trash could be another’s treasure. OptionMonster’s tracking programs detected a block of more than

21,000 October 34 calls purchased for the $0.80 offer price. The volume of that trade was more than 10 times the previous open interest in the strike, so this is clearly a new position.

Those CALLS lock in the price investors must pay to buy shares in the garbage-disposal company. They can generate major leverage in the event of a rally and double if the stock climbs just

10 percent in the next four months, but they will expire worthless if it doesn’t move. Waste Management rose 1.44 percent to $32.30 yesterday. It peaked around $36 in mid-April and is now

trying to trying to find support around $32. Total option volume in Waste Management was 10 times greater than average in the session. Calls outnumbered PUTS by a bullish 15-to-1 ratio.

Additional News: Waste Management CEO Explains Nat Gas Initiatives Additional Views: The Big Stink: Is It a Landfill or a Gold Mine? ___________________________ * Options Tips From Jon

Najarian * Read the CNBC Stock Blog * Options Tips From Pete Najarian ___________________________ _OPTIONS TRADING SCHOOL:_ * Options Terminology: Glossary * Basic Strategies — With Examples

* Options Basics: The ABCs ___________________________ DAVID RUSSELL is a reporter and writer for OptionMonster. Russell has no positions in Waste Management, ___________________________

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