The bulls are coming back to Altera, placing another bet on a
rally this summer.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of more than 2,500 September 35 calls for $0.95. Volume was more
than twice open interest at the strike, indicating that new
positions were initiated.
lock in the price where shares can be purchased, providing
investors with cheap upside exposure. They can be used to generate
leverage and to limit the amount of capital needed for getting
long. (See our
ALTR is down 0.62 percent to $31.95 in midday trading as the chip
maker tries to hold support around the same $32 level where it
bounced several times in the last year. The Heat Seeker
September 33 call buying less than two weeks ago.
In addition to the call buying, one trade rolled a short position
higher today. He or she bought back the June 32 calls for $0.70 and
sold the July 32s for $1.20. The trader probably owns shares in
Altera and is using the contracts to generate income, netting $0.50
Total option volume is almost quadruple average amounts so far
today, according to the Heat Seeker. Calls outnumber puts by a
bullish 126-to-1 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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