There's still plenty of room for bull notes
Blue chip 3M Co (NYSE:MMM) is surging, up 15.9% to trade at $119.75 at last check, after the company reported better-than-expected earnings and revenue for the second quarter.
MMM earlier blasted through overhead pressure from the $105 level to hit a 52-week high of $121.60 earlier. Shares are also bouncing off long-term support from the 40-day moving average, and now sport a 30.9% year-to-date lead.
Analysts have yet to chime in, with seven of the 11 in coverage calling 3M Stock a "hold" or worse, while the 12-month consensus target price of $110.43 is a 7.8% discount to current levels. This leaves ample room for upgrades and/or price-target hikes, which could send shares even higher.
The options pits are exploding with activity today, with 61,000 calls and 22,000 puts across the tape so far, which is 17 times the volume typically seen at this point. The most popular contract is the weekly 8/2 130-strike call, where new positions are currently being opened.
Calls have been outpacing puts over the past 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 2.51 sits higher than 80% readings from the last year.