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November 29, 2016  Tue 8:02 AM CT

An investor is looking for the uptrend to continue in Western Digital.

OptionMonster's tracking program shows that 2,349 Weekly 59.50 calls expiring on Dec. 9 were sold for $3.70 while 2,349 Weekly 62.50 calls in the same expiration were purchased for $1.90 yesterday. Volume was below open interest in the lower contracts, indicating that the trader is taking some profits and rolling a bullish position to a higher strike.

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)

WDC rose 1.1 percent to $62.27 yesterday and is up 31 percent in the last three months. The digital-storage company is expected to announce quarterly results after the close on Jan. 26.

Overall option volume in the name was twice its daily average yesterday. Calls outnumbered puts by a bullish 4-to-1 ratio.

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