Fortinet drew bullish option activity yesterday, ahead of the network-security company's earnings report this evening.
optionMONSTER's Heat Seeker system detected the purchase of 1,500 September 25 calls at the same second for $0.55. This is clearly a new position, as the volume was well above the strike's open interest of just 95 contracts before the trade appeared.
The long calls , which lock in the purchase price of the stock, are looking for FTNT to climb above $25.55 by mid-September. These options could be sold earlier at a profit if their premiums rise with a rally before then, but the contracts will expire worthless if the shares remain below the $25 strike price. (See our Education section)
FTNT rose 2.82 percent yesterday to close at $17.85. The stock is near the low end of a wide trading range of $17 to $28 that goes back to late 2011.
Overall calls in the name outnumbered puts by 2 to 1 yesterday, a reflection of the session's bullish sentiment. Fortinet also saw call buying at the September 20 strike a week ago.
The company is scheduled to report first-quarter results after the market closes today .
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