Long-term bullish bet targets NetApp


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One investor apparently believes that NetApp will slowly melt up this year.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 5,000 January 2013 45 calls for $2.20. Volume is almost triple the previous open interest in the strike.

NTAP is down 0.35 percent to $35.20 and has lost more than one-third of its value in the last six months. Revenue missed expectations the two times it issued results, but the shares seem to be finding support around the same level where they peaked in late 2009 and early 2010.

Based on that price action, some chart watchers may believe that the cloud-computing stock remains in a long-term bullish uptrend. If they're right, those January 2013 long calls will let them profit from a rally over the next year. (See our Education section)

Overall option volume is about twice the average amount so far today, with calls outnumbering puts by 19 to 1, according to Heat Seeker.

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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