Why bulls are sticking with Rovi

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Rovi has been rallying, and the bulls haven't abandoned ship yet.

optionMONSTER's Heat Seeker tracking program detected the purchase of more than 3,400 October 45 calls, most of which priced for $1.50 to $1.75. Volume was almost 3 times open interest in the strike.

ROVI Chart ROVI inched higher by 0.07 percent Friday to end the session at $44 even. The company, known for years as Macrovision Solutions, provides software that tracks ownership of digital content such as books and games.

It's has been moving straight up since bottoming around $9 in late 2008 and beat analysts' forecasts the last time it issued earnings results on July 29. ROVI is now close to levels where it last traded in September 2001.

The call buyers are betting that the stock will continue higher and need it to rally another 6 percent by expiration for their positions to turn a profit.

Overall option volume in the name was 10 times greater than average in the session, with calls accounting for a bullish 96 percent of the activity.

(Chart courtesy of tradeMONSTER)




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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This article appears in: Investing , Options

Referenced Stocks: ROVI

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