Calls jump with Ansys near resistance

By David Russell,

Shutterstock photo

Ansys is challenging resistance, and one investor is taking profits while positioning for a breakout.

ANSS optionMONSTER's Heat Seeker tracking program detected the sale of 1,350 November 45 calls for $1.60 and the sale of 1,600 November 50 calls for $0.40. Volume was below open interest in the 45s, indicating a long position was rolled to the higher strike.

The transaction let the investor recover $152,000 of cash while increasing a chance to profit from a rally with more contracts.

ANSS rose 0.4 percent to $45.05 yesterday. The maker of design software has rallied 16 percent since the beginning of September, bringing the shares to within striking distance of the $46 level that has held them in check all year.

They fell after the last earnings report on Aug. 5, when revenue missed forecasts and guidance failed to impress analysts and the market. The next release is scheduled for before the bell on Nov. 4.

Yesterday's call roll is an example of a strategy that investors frequently use to take profits and increase leverage after a position has moved in their favor. It pushed total options volume in ANSS to 21 times greater than average.

(Chart courtesy of tradeMONSTER)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: ANSS

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