New Year pop coming for Herbalife?

Someone apparently thinks that Herbalife will have a very Happy New Year.

optionMONSTER’s Heat Seeker detected the purchase of 10,000 January 80 calls for $1.82 and $1.83. Volume surpassed previous open interest of 6,627 contracts, which indicates that new money was put to work.

These long calls lock in the price where the weight-loss company can be bought, letting investors cheaply position for a rally. The contracts also have the potential to generate significant leverage from a modest move in the underlying stock.

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