Learn the trade here. Make it on tradeMONSTER

Options Trading News

September 14, 2012  Fri 2:14 AM CT

BMC: SEE CHART GET CHAIN FIND STRATEGIES
BMC Software has seen bullish trades in the past, and the activity remained optimistic in yesterday's session.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 3,000 January 45 calls for $2.15 and the sale of an equal number of January 50 calls for $0.65. Volume was more than 20 times open interest at each strike, clearly indicating new activity.

The trade cost $1.50, and will earn a maximum profit of 233 percent if the maker of enterprise software closes at or above $50 on expiration. It's known as a bullish call spread because it leverages a move between two price points, in this case $45 and $50. (See our Education section)

BMC rose 0.68 percent to $42.96 yesterday. It's been fluctuating in a range since early 2012 but has been rallying aggressively since the beginning of August. Some traders also tripled their money in the September calls earlier this month.

Overall option volume was quadruple the daily average in yesterday's session, according to the Heat Seeker. Calls outnumbered puts by 136 to 1.
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER