Symantec bulls refuse to back down
David Russell | email@example.com
optionMONSTER's Heat Seeker trade scanner detected the purchase of 12,500 April 20 calls for $2.94. While volume was below the strike's open interest at the beginning of the day, the Internet-security stock started climbing after the calls hit, indicating that investors think it still has room to run.
Those calls have a delta of 0.91, meaning they will appreciate $0.91 for every $1 that SYMC goes up. That will result in major leverage if it continues to advance while limiting the amount of capital at risk if it drops. (See our Education section for more on how options can be used to manage positions.)
SYMC is up 1.08 percent to $22.85 in morning trading and has risen 28 percent in the last six months. Supported by strong quarterly results, the stock has outperformed the broader technology sector and is now attempting to break through long-term resistance from 2008.
Our tracking programs also detected the sale of 3,400 April 21 puts for $0.31, reflecting a belief that there is little downside risk in the stock. Today's bullish trades follow similar activity in the company on Friday.
Total option volume is 5 times greater than average so far in the session, according to the Heat Seeker.