Qlik Technologies has been hammered, but now one large trader is
looking for a rebound.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 6,500 November 25 calls for $1.55 and the sale of an
equal number of November 30 calls for $0.60. Volume was below open
interest at the higher strike, so there are two possible
explanations for the trade.
One is that both halves of the transaction were opened. In that
case, it was a
bullish call spread
with potential profit of more than 400 percent if the software
maker closes at $30 or higher on expiration. That's near the level
where it peaked in March, which could make chart watchers expect it
to become resistance.
Alternately, the investor may have bought the 30s when the shares
were higher and is now underwater. In that case, he or she unloaded
them in favor of
contracts that will more closely benefit from a rally. Either way,
the trader paid $0.95 and is bullish on the stock. (See our
QLIK fell 2.33 percent to $21 yesterday and has lost 39 percent of
its value since the start of October. The stock has suffered from a
double-whammy of revenue disappointments and poor sentiment in
high-valuation technology names.
Total QLIK option volume was 9 times greater than average in the
session, with overall calls outnumbering puts by a bullish 69-to-1
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.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.