The bulls rediscovered technology yesterday.
As the overall market soared, optionMONSTER's Heat Seeker
monitoring program showed especially heavy activity in companies
LLTC saw buyers early, with money flowing into its January 31
calls for $1.15.
, which provides chip-making equipment, followed in the early
afternoon with bulls snapping up its December 47 calls for $0.85.
Then in the final minutes of trading, the attention shifted to
BCSI and CVLT, with the December 20 calls and the January 55
calls bought in each, respectively.
All four stocks rallied 4-6.5 percent, and all the calls
out of the money
. This means that traders are looking for the shares to continue
higher in coming weeks.
Because they lock in the price at which a stock must be
tend to appreciate much more quickly than the underlying equity
itself if it rises. The drawback is that they will expire
worthless if a rally doesn't occur. (See our
Overall option volume was 16 times greater than average in CVLT
and 10 times above average in BCSI and LLTC. In KLAC it was about
triple the average level, according to the Heat Seeker.