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 The NASDAQ OMX Group, Inc.
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