Bulls lining up for Align Technology

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Align Technology reports earnings later this month, and traders are getting long now.

optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 1,500 April 50 calls, mostly for $4.60 and $4.70. Volume exceeded previous open interest of 1,101 contracts, which indicates that new money was put to work.

Such long calls lock in the price where a stock can be purchased, letting investors cheaply leverage a rebound. This way they won't miss a rally but also have much less capital at risk than they would by buying shares directly. (See our Education section)

ALGN is up 1.01 percent to $54.13 this afternoon. The maker of dental and orthodontic products has more the doubled from early last year, riding a wave of strong quarterly reports. It's been pulling back in recent months but is now attempting to bounce at its 200-day moving average.

The next set of numbers will be released on April 23.

Overall option volume in Align is more than 8 times greater than average so far in the session, with calls accounting for a bullish 86 percent 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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This article appears in: Investing , Options

Referenced Stocks: ALGN

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