How bullish strategy is playing Qlik


Shutterstock photo

Qlik Technologies has been rallying along with other software names, and one investor is adjusting a position to ride it higher.

optionMONSTER's Heat Seeker tracking system detected the purchase of about 1,000 June 32 calls for $1.65 and the sale of a matching number of June 35 calls for $0.54 and $0.55. Roughly the same amount of May 31 calls were sold for $1.25 and $1.45 at the same time against previous open interest.

The activity likely resulted from an existing position in the May 31 calls being closed and a new bullish strategy being opened in the following month. The June trade, a bullish call spread, uses income from selling higher-strike contracts to offset the cost of buying those closer to the money. (See our Education section)

In sum, the trader collected a credit of about $0.20 and has the right to earn an additional $3 if QLIK closes at or above $35 on expiration. The stock rallied 11 percent to a new high of $32.06 on Friday after management reported better-than-expected revenue and issued strong guidance for the second quarter.

The company, which went public for $10 a share last June, also said it's adding jobs in response to strong demand from U.S. customers.

Overall option volume in QLIK was 11 times greater than average in the session, with calls outnumbering puts by the same ratio.

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

More from optionMONSTER




Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by