Options Trading News

October 12, 2016  Wed 8:02 AM CT


A large trader is extending a bullish position in Symantec by a year.

optionMONSTER's market scanner shows that 15,000 January 26 calls were sold for $0.93 while 15,000 January 2018 31 calls were purchased for $1.02 yesterday. Volume was below open interest in the nearer-term strike, indicating that a bullish position was rolled forward by a year for $0.09.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

SYMC fell 0.75 percent to $25.06 yesterday but is up 20 percent in the last three months. The cybersecurity companyis scheduled to announce quarterly results after the close on Nov. 3.

Overall option volume was 7 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 58-to-1 ratio.

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