Calls bet Informatica is on comeback
Informatica is attracting some bullish option activity as it tries to rebound from steep losses that followed its last two quarterly reports.
More than 1,800 March 30 calls traded in a strong buying pattern yesterday with premiums rising from $2.40 to $2.60, according to optionMONSTER's Heat Seeker real-time tracking system. The volume was well above the strike's open interest of 1,010 at the beginning of the session, indicating that this is new positioning.
The long calls are looking for INFA to gain roughly 15 percent by mid-March. Traders could sell those contracts earlier if their premiums gain with a rally before then, but the calls will expire worthless if the shares don't move. (See our Education section)
INFA rose 2.62 percent to close at $28.24, a day after rising above its 50-day moving average for the first time since early October. At that time the stock had been trading near the $34 level but gapped to a low of $23.83 after the business software company warned that it would miss earnings and revenue estimates.
In early July shares had gapped down another time from above $43 to the $28 level, also on disappointing quarterly results. The stock was trading at 52-week highs above $54 in early April.
Only 116 puts traded in the entire session yesterday, a reflection of the day's bullish sentiment.
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