Building component producer Carrier Global Corporation (CARR) is up 29% over the past year, slightly beating the returns of the overall stock market. One trader sees shares trending higher through the middle of next year.
That’s based on the June 2025 $85 calls. With 288 days until expiration, 3,509 contracts traded compared to a prior open interest of 120, for a 29-fold rise in volume on the trade. The buyer of the calls paid $3.10 to make the bullish bet.
Carrier shares recently traded for about $70, so shares would need to rise by $15, or about 21%, for the option to move in-the-money.
Carrier has been trending higher, and is just slightly off its 52-week high of $73.06.
Shares trade at 26 times forward earnings, a slight premium to the market right now, but earnings are up tenfold over the past year and revenues are up 12%.
Action to take: With interest rates coming down, construction may see a boost over the next year that helps Carrier increase sales even further. That may make shares a buy over the coming weeks, and investors should look to take advantage of any market weakness to pick up shares.
Interested investors can also get a 1% dividend at today’s prices.
For traders, the June 2025 $85 calls have plenty of time to play out, and could see high-double-digit returns or better. Traders may want to buy a partial position now, and use down days in the market to add to that position.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.