SAIC is trying to recover, but one investor sees resistance on
optionMONSTER's tracking systems detected the sale of 2,000 August
12 calls for $0.40. Volume was more than triple open interest in
the strike when the session began.
Writing calls obligates the trader to sell shares for $12 if they
close above that level on expiration, but including the credit
bought their exit price will be $12.40. He or she probably owns
stock in the aerospace company and is using the options to
on the position. (See our
The trade makes sense because SAI bounced around $12 several times
between December and April before dropping below it last month.
It's also the current location of the 200-day moving average, which
could be leading some chart watchers to believe that it will
struggle to push above that level.
SAI is up 0.26 percent to $11.78. Overall option volume is 10 times
greater than average so far today.