OptionsHouse

Options Trading News

February 21, 2013  Thu 2:45 AM CT

OCZ: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »