Teradyne has been trending higher, and the momentum players are
stepping in today.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of more than 7,000 July 18 calls, most of which priced for $0.95
and $1. Volume was more than triple the previous open interest at
the strike, showing that this is fresh buying.
lock in the price where investors can buy shares in the maker of
semiconductor-testing equipment. The options can generate some nice
leverage in the event of a rally but will also become worthless if
the stock declines or stops climbing.
The calls provide upside exposure at a much lower cost than owning
the equity. (See our
section for more on how options can be used to manage risk.)
TER is up 2.99 percent to $17.24 and is up 10 percent in the last
three months. The stock has been gaining despite mixed earnings
reports and is now attempting to hold support around the same level
where it peaked in September. Some chart watchers may consider that
a bullish setup.
The Heat Seeker also spotted buying in the July 16 calls for $1.60
to $1.64 on Feb. 1, and those contracts have now inflated to $2.
Total option volume is 9 times greater than average so far today,
according to Heat Seeker. Calls outnumber puts by more than 500 to
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.