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


Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

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.

View more education articles »