Market News

October 19, 2016  Wed 12:05 PM CT

Traders are betting on gains in NetApp this week.

optionMONSTER's monitoring system detected the purchase of more than 2,300 October 34 calls for $0.26 to $0.52 today. Volume was more than 4 times the open interest in the strike, showing that this is fresh buying.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

NTAP is up 0.46 percent to $33.81 in afternoon trading and has soared 30 percent in the last three months. The cloud-computing company reported bullish results on Aug. 17 and is expected to release its next quarterly numbers after the close on Nov. 16.

Overall option volume is 3 times greater than average in the name so far today. Calls outnumber puts by a bullish 18-to-1 ratio.

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