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March 3, 2014  Mon 12:05 PM CT

VMware saw bullish activity last week, and traders are keeping the faith today.

optionMONSTER's Heat Seeker monitoring program detected buying in the March 100 calls on Wednesday, with roughly 4,000 traded at that time.

VMW fell 1.12 percent to $94.97 in afternoon trading, following the rest of the market lower because of geopolitical tensions with Russia. But options volume is flowing again in the maker of virtualization software.

This time, 4,000 of the March 95 calls were purchased for $2.41 and an equal number of March 100s were sold for $0.81. Given the existing open interest at the higher strike, there are two possible explanations for the activity.

One is that they rolled down their trade from last week, thereby increasing their delta and their leverage to the underlying share price. Alternately, they may have initiated a bullish call spread, with the potential to earn 213 percent from VMC rallying to $100 or higher by expiration. Either way, they paid $1.60 and are looking for upside in the share price. (See our Education section.)

Total option volume is quadruple the daily average so far in the session, according to Heat Seeker. Calls outnumber puts by a bullish 14-to-1 ratio.

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