Last-minute call buying in Linear Tech
Bullish traders targeted Linear Technology just before the closing bell yesterday.
optionMONSTER's monitoring system detected the purchase of 6,340 March 43 calls for $0.65 in the last 2 minutes of trading. This is clearly fresh buying, as open interest in the strike was only 372 contracts before the trades appeared.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
LLTC fell 0.33 percent to $42.30 yesterday and is down 7 percent in the last three months. The analog-circuit manufacturer reported bullish results on Jan. 19 and is expected to announce its next quarterly numbers on April 12.
Overall option volume in the name was 6 times greater than average yesterday. Calls outnumbered puts by a bullish 11-to-1 ratio.
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