Call buying flows into Riverbed Tech

optionMONSTER

Traders are snapping up calls in Riverbed Technology before its earnings report tomorrow afternoon.

More than 7,000 August 20 calls traded on Friday, led by prints of 3,000 and 3,034 purchased for $0.37 and $0.38 respectively, according to optionMONSTER's Heat Seeker tracking system. This is clearly fresh buying, as open interest in the strike was only 477 contracts before the trades appeared.

These long calls , which lock in the price where traders can buy the stock, are looking for RVBD to rally above $20 in the next three weeks. But they will expire worthless if shares remain below that level through expiration in mid-August. (See our Education section)

RVBD was up a penny on Friday to $17.49. Shares broke out of a multi-month range about three weeks ago and rose above their 200-day moving average last Wednesday. The networking-technology company is scheduled to announce second-quarter results tomorrow at 4:30 p.m. ET.

Total option volume in RVBD topped 11,700 contracts on Friday, 8 times its daily average for the last month. Overall calls outnumbered puts by nearly 15 to 1, a further indication of the day's bullish sentiment.

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