Market News

October 13, 2016  Thu 8:22 AM CT

Investors were snapping up calls in Mentor Graphics yesterday for the second time in one week.

optionMONSTER's monitoring program shows that 2,700 April 30 calls were purchased for $1.50 yesterday. This represents fresh buying, as open interest in the strike was just 65 contracts before the trades appeared, and follows buying in the January 30 calls on Oct. 4.

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)

MENT rose 0.52 percent to $27.23 yesterday and is up 25 percent in the last three months. The chip-software design company reported bullish results on Aug. 18 and is expected to announce its next earnings numbers after the close on Nov. 17.

Overall option volume in the name was 7 times greater than average yesterday.

News Archives

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »