Bulls hope for tide to turn in Riverbed

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Riverbed Technology is down more than 27 percent this year, but traders were betting on a comeback yesterday ahead of its earnings report on Monday.

More than 9,700 May 15 calls traded in a strong buying pattern yesterday, with the largest blocks going for $0.84 to $0.86, according to optionMONSTER's Heat Seeker system. The volume was above the strike's open interest before the session began, indicating new activity.

RVBD rose 4.6 percent to close at $14.79 yesterday but has lost more than a quarter of its value since starting the 2013 at $20.37. The stock gapped down from that level after a weak earnings report in early February and has been trending lower ever since.

Yesterday's long calls , which lock in the price where traders can buy the stock no matter how far it might climb, are looking for RVBD to gain roughly 7 percent in the next three weeks. But these contracts could expire worthless if the shares remain below the $15 strike price. (See our Education section)

Total option volume in the name surpassed 13,000 contracts yesterday, more than 6 times its daily average for the last month. Calls outnumbered puts by 7 to 1, a reflection of the session's bullish sentiment.

The networking-technology company is scheduled to release first-quarter results after the market closes on Monday.


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