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March 15, 2013  Fri 9:38 AM CT

MTG: SEE CHART GET CHAIN FIND STRATEGIES
MGIC Investment spiked higher as March began, but one trader sees limited upside in the next three months.
 
More than 5,000 June 5.50 calls have traded in volume well above the previous open interest of 1,078, indicating new activity. The big print of 4,756 was sold for $0.46, according to optionMONSTER systems.

These calls could have been sold naked with an initial bearish bias, but they were more likely traded against long shares in a covered call strategy. (See our Education section)

MTG is up 0.81 percent to $4.99 this morning, within its range of the last week. The mortgage insurer ran up from $3 to $6 into the start of this month, rising sharply along with other names in the sector, as seen on our researchLAB analysis tool.
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Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  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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