Buyers look for Riverbed to rise again

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Shares of Riverbed Technology got hammered after its earnings release last week, but traders are looking for a rebound in the next seven months.

More than 5,700 September 18 calls were bought yesterday, led by a block of 4,408 that went for $1.65, optionMONSTER's Heat Seeker tracking system. The open interest in the strike was a mere 26 contracts before trading began, clearly showing that this is new activity.

RVBD slipped 0.56 percent to $16.12 yesterday. The networking-technology company began the year trading above $21 but gapped down last Thursday on disappointing fourth-quarter results, which were attributed to costs related to its $1 billion acquisition of softwar maker Opnet Technologies last October.

Yesterday's long calls , which lock in the price where traders can buy stock, are looking for RVBD to gain roughly 22 percent or more by mid-September. These options could be sold earlier at a profit in the event of a rally, but they will expire worthless if shares remain below the $18 strike price. (See our Education section)

Total option volume in the name exceeded 12,500 contracts yesterday, double its daily average for the last month. Calls outnumbered puts by 3 to 1, a reflection of the session's bullish sentiment.

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