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Option Bulls Look for L-3 Gains to Accelerate | February 22, 2012 | 06:02 AM EST

L-3 Communications Holdings has been steadily climbing, and now the bulls are stepping in.

Some large blocks in the March 75 calls lit up OptionMonster's real-time systems yesterday, with buyers paying $0.15. More than 2,800 of those called traded against previous positioning of just 121 contracts.

These calls lock in the entry price that investors must pay to buy a stock, so they can offer major leverage if it moves in the right direction, but they will expire worthless if no rally occurs.

L-3 is a leading supplier of a broad array of products and services used in a number of aerospace and defense platforms. It recently increased its quarterly dividend by 11 percent, and the stock has been working its way upward since trading below $60 back in October.

The company’s shares ended yesterday’s session down 0.3 percent at $70.74. More than 4,200 calls traded against fewer than 500 puts . Overall option volume was 20 times greater than average.

—Najarian has no position in LLL.

Additional News: L-3 Posts Higher Quarterly Profit

Additional Views: Defense Sector: Buy or Sell?

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