Jive Software has been weak, but one trader expects on a
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 1,350 October 17.50 calls for $0.75 and the sale of an equal
number of October 12.50 puts for $0.35. Volume surpassed open
interest at both strikes, indicating that a new bullish position
The investor paid $0.40 and stands to profit from a rally in the
software company, whose products combine social media with business
applications. They also stand to lose money to the downside because
of the short puts. While similar to owning shares, the strategy
differs because both the calls and puts will expire worthless if
the stock remains between $12.50 and $17.50.
JIVE rose 2.08 percent to $15.70 yesterday. It went public for $12
in December 2011, rallied as high as $28.15 in March and has been
dropping since. The last earnings report on Aug. 7 added to the
bearishness because guidance was below consensus.
The stock has nonetheless held its ground since, which could make
some investors expect a rebound.
Monday's bullish trade pushed total option volume in the name to 12
times greater than average, according to Heat Seeker.