OptionsHouse

Options Trading News

February 13, 2013  Wed 9:39 AM CT

EMC: SEE CHART GET CHAIN FIND STRATEGIES
Traders are looking to make some fast money in EMC.

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.
Share this article with your friends


Related Stories

EMC

Traders bet EMC will hold key level

March 19, 2015

The network data-storage provider rallied in the weeks following its last earnings report Jan. 29 but hit resistance and has since given up those gains.

OptionsHouse

Premium Services

Education & Strategy

Investor deficiency in premium collection

Most investors have heard about selling options as a form of income generation. You hear it from brokers and financial advisors as a way to generate income without selling off pieces of your nest egg, dwindling through your retirement accounts, and then being stuck figuring out how to financially afford the rest of your life...

View more education articles »