EMC bulls hope to make fast money
Mike Yamamoto | [email protected]
optionMONSTER's Heat Seeker system detected the purchase of more than 6,900 February 24.50 calls this morning for an average price of $0.23. Open interest in the strike was just 562 contracts before today's trading began, so these are clearly new positions.
These long calls, which lock in the price where traders can buy the stock, can provide significant leverage if EMC pops before they expire at the end of this week. But because of their very short duration, these options will lose value in a hurry if the shares don't move soon. (See our Education section)
EMC is down 0.33 percent to $24.46 today. The data-storage company gapped lower on Jan. 29 after issuing disappointing guidance in its last quarterly report, but shares quickly rebounded and have been trading in an extremely tight range since.
Overall calls at all EMC strikes outnumber puts by more than 7 to 1 so far, a reflection of the day's bullish sentiment.