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Bulls want to ring the register with VeriFone

VeriFone Systems has pulled back to $33 and now the bulls are stepping in.

optionMONSTER's tracking programs detected the purchase of about 3,200 September 37 calls for $0.50 to $0.60. Volume was about twice previous open interest at the strike, which indicates new money was put to work on the long side.

Calls lock in the price where investors can buy shares in the maker of credit-card readers. They can generate significant leverage if shares move in the right direction, providing investors with cheap exposure to a rally. (See our Education section.)

PAY fell 0.09 percent to $33.15, roughly the same level where it consolidated between March and May. Its last two earnings reports beat expectations, and the next set of numbers is due on Sept. 4. Monday's contracts will benefit from a strong release.

Total option volume was 9 times greater than average in the session, with calls outnumbering puts by 50 to 1.

(A version of this post appeared on InsideOptions Pro yesterday.)

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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