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Bulls are playing for keeps in Glu Mobile

Glu Mobile is attracting some strong interest from bullish buyers.

The maker of mobile-phone games exploded higher by 21 percent yesterday to $4.80, its highest closing price since mid-2008. Investors also snapped up the June 5 calls, purchasing some 3,500 contracts, according to our Heat Seeker tracking program. Premiums rose from just $0.10 to $0.35 as the session progressed.

GLUU quadrupled in value between September and February and has been consolidating since then. Its revenue outlook was better than expected the last time results came out on May 3, but the main catalyst for the shares appears to be a recommendation last week by ThinkEquity, which predicted the company's shift to social mobile games would drive it to the $5 level.

Yesterday's activity seems to have been a continuation of that earlier bullishness. More than 8 million shares traded, an all-time record, which suggests that new investors are gaining interest in the name.

Overall option volume was 13 times greater than average in the session, with calls outnumbering puts by 42 to 1.

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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