Houghton and Atkeson

Is something cooking at Carpenter Tecnology (CRS)?

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Carpenter Technology (CRS), is the specialty metals company in Reading, Pa., which has been under some pressure due to its exposure to the automotive, industrial and consumer end-use markets. However, it appears to us at at Big Money Options that its prospects may be turning and could benefit substantially with a healthier economy.

Safe to say, if we are talking about it, options volume is above average -- today it's five times the usual trading volume. With the stock trading at $59.40 (down over 20% year-to-date), investors are trading upward of 4,000 of the CRS Sept 65 Calls (CRSIM) for $4.50.

Instead of melting, we have to think things are "cooking" because the options activity has a bullish tone.

Also worthy of note: The company reloaded its buyback program with another $250 million (the second in as many years) this past December and has $220 million remaining. In the last quarter, the company bought back 360,000 shares at an average price of $69. One would hope that they have been buying here under $60!

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