Call buyer bets on OCZ comeback
OCZ Technology has been pummeled for months, but one trader is betting on a reversal of fortunes.
optionMONSTER's Heat Seeker system detected the purchase of 2,000 June 2 calls at the same second for $0.45 yesterday. The volume was well above the strike's open interest of 777 contracts before the trading began, so this is fresh buying.
The long calls , which lock in the price where traders can buy the stock, are looking for OCZ to rebound by expiration in mid-June. The solid-state drive maker is facing an April 8 deadline to file quarterly reports required for it to stay listed on the Nasdaq. (See our Education section)
OCZ fell 3.61 percent to finish yesterday's session at $1.87, its lowest close since mid-December. The stock spiked up to $7.67 at the end of July but then gapped down twice in subsequent months on negative news, including the surprise resignation of its co-founder and CEO.
Total volume in the name was 3,420 contracts, nearly double its daily average for the last month. Calls outnumbered puts by 15 to 1.
Disclosure: I own OCZ shares.
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