Nuance Communications is trying to hold above some long-term
lows, and yesterday the bulls wagered on a bounce.
optionMONSTER's Heat Seeker system detected unusual activity in the
July 19 calls, with buyers paying $1.65 to $1.70. Those premiums
quickly inflated to $1.95 as shares began ticking higher, which
shows the kind of leverage that can be achieved with options.
lock in the purchase price for the stock, so even a small move in
the share price can have a big impact on the value of the options.
NUAN was down slightly when the trades first hit but ended the
session up 0.74 percent to $19.02. The maker of voice-recognition
software has lost more than 20 percent in the last month, with most
of that drop following a weak earnings report on Feb. 7.
More than 8,300 of those July 19s traded in the session, almost 10
times the strike's open interest before the session began, clearly
indicating new activity. Calls outnumbered puts by a bullish
(A version of this post appeared on
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.