Options Trading News

February 20, 2013  Wed 9:44 AM CT

The bulls won't back down in Symantec.

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.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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