Traders are looking for Electronic Arts to score in the next month.
Nearly 2,000 September 32 calls were purchased for $0.07 on Friday afternoon, according to optionMONSTER's Heat Seeker tracking system. The volume wasn't huge but still dwarfed the strike's previous open interest of just 10 contracts, so this is fresh buying.
These long calls lock in the price where traders can buy the stock through mid-September no matter how far it might rise. But these contracts will expire worthless if shares remain below $32. (See our Education section)
EA rose 0.68 percent to $27.97 on Friday, its highest close since September 2008. The game developer gapped up from below $24 after reporting quarterly numbers on July 23 and has been working its way higher since. The company is celebrating the 25th anniversary of its groundbreaking "Madden NFL" title with a new release today, ahead the 2013 football season kickoff next week.
Total option volume in the name on Friday was double its daily average for the last month, with calls outnumbering puts by 8 to 1.
More From optionMONSTER
- Long-term put trade in Hovnanian
- Trader sees end to slide in Strayer
- Higher volatility seen in energy ETF
- Investment & Company Information
- Electronic Arts