Align Technology reports earnings later this month, and traders are getting long now.
optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 1,500 April 50 calls, mostly for $4.60 and $4.70. Volume exceeded previous open interest of 1,101 contracts, which indicates that new money was put to work.
Such long calls lock in the price where a stock can be purchased, letting investors cheaply leverage a rebound. This way they won't miss a rally but also have much less capital at risk than they would by buying shares directly. (See our Education section)
ALGN is up 1.01 percent to $54.13 this afternoon. The maker of dental and orthodontic products has more the doubled from early last year, riding a wave of strong quarterly reports. It's been pulling back in recent months but is now attempting to bounce at its 200-day moving average.
The next set of numbers will be released on April 23.
Overall option volume in Align is more than 8 times greater than average so far in the session, with calls accounting for a bullish 86 percent of the total.
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