Option trading has been active in Symantec, and the bulls were back yesterday.
Volume spiked in the August 27 calls and the September 30 calls, according to optionMONSTER's Heat Seeker tracking system. The August 27s were sold for about $0.13 and the September 30s were bought for $0.08 and $0.09, so it appears that traders were rolling positions to higher and out in time.
These long calls lock in the price where the computer-security stock can be purchased, letting investors take cheap positions that will benefit from a rise in the shares. The traders can keep riding a rally without ever owning the shares if they so choose, limiting the amount of money at risk while having the potential for huge leverage. (See our Education section)
SYMC rose 0.11 percent to $26.96 yesterday. Trading in the name surged in June as the call buyers rushed in, with even more coming in the next month. Shares pushed to a 52-week high last Thursday, and some of those options were up more than 500 percent.
Calls outpaced puts by 9,300 to 1,078, a further reflection of the session's bullish sentiment.
Disclosure: I own SYMC calls.
(A version of this post appeared on InsideOptions Pro yesterday.)
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