The bulls have already made money in Altera, and now one trader
is looking for new 52-week highs.
, optionMONSTER's Heat Seeker monitoring system detected buying in
the December 35 calls for $2.05. The chip maker proceeded to rally,
and those contracts have now almost doubled to $3.50.
Today's traders are even more aggressive, looking for a rip higher
in the next two months. This time, the Heat Seeker shows the
purchase of 2,100 October 39 calls for $0.52 and the sale of 1,785
October 41 calls for $0.13. Volume is more than triple the previous
open interest at both strikes, indicating that new money was put to
work on the long side.
This position looks like a modified
, which uses premium from selling contracts that are farther
out of the money
to buy others
closer to the money
. Today's transaction will leverage a move from $39 to $41 and
leave some calls in play for a break above the top of that range.
section for more on ways that option trades can be tailored to your
ALTR is up 0.52 percent to $37.42 in afternoon trading and has
risen 13 percent in the last three months. It's significantly
outperformed the Nasdaq, the S&P 500, and the semiconductor
sector in that time. The stock peaked around $41 early 2012, so
today's trader is apparently targeting a return to that level.
Total option volume is quadruple the daily average so far today,
with calls outnumbering puts by a bullish 7 to 1 ratio.
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