F5 Networks has been working its way higher, and the bulls are
looking for the move to continue.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 5,706 July 120 calls for $1.20 and the sale of a
matching number of July 110 puts for $1.19. Volume was more than 5
times open interest at both strikes, which indicates that new money
new positions were initiated.
locks in the price where investors can buy a stock, which lets them
profit from a rally.
generates income but forces them to buy shares at a lower level in
the event of a drop. Combining the two strategies is similar to
owning shares, making money to the upside and losing to the
The main difference is that the option strategy cost just $0.01 to
implement and will track movements in the provider of networking
software less closely as expiration approaches. (See our
section for more on how
time affects the value of options
FFIV fell 1.72 percent to $108.55 on Friday but came into the
session up 7 percent in the preceding two weeks. The
network-technology company has beaten earnings expectations for the
last five quarters.
Overall option volume in the name was 12 times greater than average
in the session, with the bullish combination trade accounting for
two-thirds of the total.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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