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Bulls roll with Infosys another day

For the second day in a row, the bulls are rolling with Infosys.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,750 May 55 calls for $2.35 and the sale of an equal number of April 55 calls for $1.90. Volume was below open interest in the Aprils, indicating that an existing long position was closed and rolled forward in time.

The transaction gives the investor an additional month of upside exposure to the India-based outsourcing name while protecting him or her from the quick premium drop that will probably follow its quarterly report later this month. (See our Education section for more on how options can be used to manage trades.)

INFY is up 2.36 percent to $54.55 in midday trading and is up 29 percent so far this year. There was a similar transaction yesterday, also at a cost of $0.45.

Some 7,400 contracts have traded in the name so far today, compared with barely 1,700 in a typical session. The Heat Seeker shows calls outnumbering puts by a bullish 10-to-1 ratio.

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

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


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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