Options Trading News

August 1, 2013  Thu 9:26 AM CT

A bullish spread dominates today's option activity in Symantec as share push to new highs.

About 12,000 SYMC options have changed hands so far, already twice the daily average over the last month. Almost all of the action is in one trade that appears to be rolling a long-call position to a later-dated, higher strike. (See our Education section)

optionMONSTER's Heat Seeker system shows that a trader sold 4,255 August 26 calls for the bid price of $0.97 against previous open interest of 10,000. At the same time, he or she bought the same number of the September 29 calls for the ask price of $0.18 in volume far above open interest of just 305 contracts at that strike, clearly indicating a new position.

SYMC is up fractionally to $26.71 this morning, its highest level since December 2004. The security-software company gapped up from below $25 yesterday after reporting quarterly numbers. Shares were at support around $22 in late June. 
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The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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