How one large bull is playing Qlik

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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 higher-delta contracts that will more closely benefit from a rally. Either way, the trader paid $0.95 and is bullish on the stock. (See our Education section)

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 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

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