Calls look for big rally in Infoblox
Traders are looking for Infoblox to rally sharply in the first half of the year.
optionMONSTER's Heat Seeker system detected heavy buying in the July 35 calls today, where 2,900 contracts traded for $4.60 to $4.80. Open interest in the strike was just 653 contracts before the session began, indicating that new positions are being established.
These long calls lock in the price where the stock can be purchased through mid-July no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below $35. (See our Education section)
BLOX is up 1.75 percent to $33.13 in afternoon trading, near the middle of its recent range. The network-technology company gapped down from $45 after its last earnings report in late November and has been trading mostly between $29 and $39 since.
The company has not announced the date of its next earnings report, but last year's schedule suggests that results will be released toward the end of this month.
Total option volume tops 3,200 contracts so far today, already 13 times its daily average for the last month. Only 230 of those options are puts, a reflection of the session's bullish sentiment.
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