Market News

February 21, 2013  Thu 2:45 AM CT

OCZ Technology has been pummeled for months, but one trader is betting on a reversal of fortunes.

optionMONSTER's Heat Seeker system detected the purchase of 2,000 June 2 calls at the same second for $0.45 yesterday. The volume was well above the strike's open interest of 777 contracts before the trading began, so this is fresh buying.

The long calls, which lock in the price where traders can buy the stock, are looking for OCZ to rebound by expiration in mid-June. The solid-state drive maker is facing an April 8 deadline to file quarterly reports required for it to stay listed on the Nasdaq. (See our Education section)

OCZ fell 3.61 percent to finish yesterday's session at $1.87, its lowest close since mid-December. The stock spiked up to $7.67 at the end of July but then gapped down twice in subsequent months on negative news, including the surprise resignation of its co-founder and CEO.

Total volume in the name was 3,420 contracts, nearly double its daily average for the last month. Calls outnumbered puts by 15 to 1.

Disclosure: I own OCZ shares.
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