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June 12, 2013  Wed 10:55 AM CT

ALTR: SEE CHART GET CHAIN FIND STRATEGIES
The bulls are coming back to Altera, placing another bet on a rally this summer.

optionMONSTER's Heat Seeker monitoring system detected the purchase of more than 2,500 September 35 calls for $0.95. Volume was more than twice open interest at the strike, indicating that new positions were initiated.

Long calls lock in the price where shares can be purchased, providing investors with cheap upside exposure. They can be used to generate leverage and to limit the amount of capital needed for getting long. (See our Education section)

ALTR is down 0.62 percent to $31.95 in midday trading as the chip maker tries to hold support around the same $32 level where it bounced several times in the last year. The Heat Seeker also detected September 33 call buying less than two weeks ago.

In addition to the call buying, one trade rolled a short position higher today. He or she bought back the June 32 calls for $0.70 and sold the July 32s for $1.20. The trader probably owns shares in Altera and is using the contracts to generate income, netting $0.50 of premium.

Total option volume is almost quadruple average amounts so far today, according to the Heat Seeker. Calls outnumber puts by a bullish 126-to-1 ratio.
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