Bulls reach for the clouds in Teradata

optionMONSTER

Cloud-computing stocks have been active recently, and yesterday the bulls turned to data-warehousing company Teradata.

optionMONSTER's Heat Seeker monitoring program detected an early volume spike in the June 60 calls, with large blocks crossing for $0.80 and $0.85. Those contracts lock in the price where the stock can be purchased, which can result in some nice leverage in the event of a rally.

And that's what happened yesterday. TDC traded around $56.90 when the calls, pushed higher and closed the session up 2.88 percent at $58.24. The options, meanwhile inflated more than 50 percent to $1.30. (See our Education section)

Teradata's last earnings report in early May was weak as management cited customer "belt tightening." It touched a 52-week low on an intraday basis after that release but then reversed and has been steadily climbing ever since.

Total option volume was 5 times greater than average in the session, with calls outnumbering puts by a bullish 17-to-1 ratio.

Data-center stocks including EMC and NetApp have also seen bullish activity in recent sessions.

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




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