Options Trading News

May 8, 2013  Wed 10:08 AM CT

Bullish positions in Tibco Software have been working, and traders don't want to exit the name yet.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,000 June 23 calls for $0.45 and the sale of an equal number of June 20 calls for $1.45. Volume was below open interest in the June 20s, indicating that an existing position was closed and rolled to the higher strike.

The investor collected a credit of $1 in the process and remains exposed to further upside in the maker of infrastructure software. He or she probably recovered at least the initial outlay and is now risking only profits. (See our Education section for more on how options can be used to manage trades.)

TIBX is up 0.95 percent to $20.77 this morning in morning trading and  is up 15 percent since hitting a 2-1/2 year low near $18 in mid-April. The Heat Seeker also showed unusual activity on Friday and Monday, and both of those bets have been working.

Total option volume is already twice the daily average in TIBX so far today, according to Heat Seeker. Calls outnumber puts by about 170 to 1.
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