Call buyer books ticket with Concur

optionMONSTER

One trader is betting that Concur Technologies will rally near all-time highs in the next two months.

optionMONSTER's Heat Seeker system shows that 1,600 August 80 calls were bought for $3.80 to $4 in the final hour of yesterday's session. This is clearly a new position, as open interest in the strike was just 609 contracts before the trade appeared.

These long calls , which lock in the purchase price for the stock, are looking for CNQR to gain roughly 5.5 percent or more by mid-August. The options could be sold earlier at a profit if the premiums rise with a rally before then, but the contracts will expire worthless if shares remain below the $80 strike price. (See our Education section)

Shares of Concur, which provides cloud-based management of travel billing and expenses for companies, rose 2.29 percent yesterday to close at $79.52. CNQR surged to a lifetime high of $84.86 after earnings results in early May but had been trending lower until bouncing at $77 on Monday, and the stock is now back above its 50-day moving average.

Total option volume in the name was more than 16 times its daily average for the last month. Calls outnumbered puts by 8 to 1, a reflection of the bullish sentiment.


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