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Bullish traders logging into VeriSign

VeriSign has been crumbling since late May, but now the bulls are back.

optionMONSTER's Heat Seeker tracking system detected heavy call buying in the company, which provides Internet security and registers web domains. The July 35s and July 36s traded more than 1,400 times each, with large blocks respectively pricing for $0.23 to $0.28 and $0.09 to $0.16.

Volume was more than 7 times open interest in both strikes. Calls would outnumber puts by a bullish 10-to-1 ratio in VRSN overall by yesterday's close.

The shares had fallen in 17 of the previous 20 sessions and started yesterday near a five-month low, but they ended higher by 2.06 percent to $33.27. VRSN had gapped violently lower on May 5 but rebounded to long-term resistance around $37.30 later in the month. The stock then steadily sold off and proceeded to drop in 17 of the next 20 sessions.

VRSN attempted to end that slide yesterday, climbing 2.06 percent to $33.27.

Investors also purchased the August 34 calls and the June 33 calls, according to the Heat Seeker. All the buying pushed total option volume in the name to 9 times greater than average.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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