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April 25, 2013  Thu 9:44 AM CT

TBX: SEE CHART GET CHAIN FIND STRATEGIES
Tibco Software is trading near multi-year lows, but some traders are betting on a rebound.

optionMONSTER's Heat Seeker system shows that 2,170 June 20 calls have been purchased this morning for an average price of $0.63. This is clearly fresh buying, as the volume was far above the strike's open interest of just 34 contracts before the trades appeared.

TIBX is up 1.41 percent to $19.05 this morning. The business-infrastructure company has been trending lower since trading above $32 last September and gapped down from above $23 last month after its last earnings report. The stock fell to $18.18 last Friday, its lowest intraday price since October 2010.

Today's long calls, which lock in a $20 purchase price for the stock, can provide significant leverage if TIBX rallies above that level by mid-June. These options could be sold earlier at a profit if their premiums rise before then, but they will expire worthless if the stock remains below that strike price. (See our Education section)

Overall option volume in the name is already more than double its full-session average. Calls outnumber puts by 86 to 1, a reflection of the day's bullish sentiment.
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It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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