Teradyne is bouncing after a pullback, and the bulls are jumping
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 5,200 April 16 calls for $0.82. A matching number of April
18 calls were sold at the same time for $0.17, resulting in a cost
The trade appears to be a
bullish call spread
, with the potential to earn a maximum profit of 208 percent if TER
closes at or above $18 on expiration. (See our
Volume was below open interest in the April 18s, so the investor
may have also rolled a long position down to the lower strike. That
would also be bullish because the trader would have spent money for
contracts that more closely track gains in the
TER is up 1.87 percent to $16.03 in early afternoon trading and is
up 18 percent so far this year. It's been climbing along with other
companies in the chip industry as the economy improves and
smartphone demand drives activity.
The stock had also pulled back to the same $15 level that was
resistance in July and October. That could make some chart watchers
think that it's still trending higher.
Overall option volume is 8 times greater than average so far today,
with calls outnumbering puts by 44 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.
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