One trade appears to making a cheap bet that Symantec will rebound sharply in the next month.
optionMONSTER's Heat Seeker system shows that 2,674 October 28 calls traded in less than 3 minutes yesterday for $0.09 and $0.10. The volume was above the previous open interest in the strike, indicating that this is new positioning.
These long calls lock in the price where the stock can be purchased no matter how far it might climb. But they will expire worthless if shares remain below the $28 strike price through mid-October. (See our Education section)
SYMC fell 0.57 percent yesterday to close at $25.22. The digital-security company gapped higher after its last earnings report in late July and saw frequent upside option activity but has been drifting lower for the last month, falling below its 50-day moving average.
Total option volume in Symantec yesterday was more than triple its daily average for the last month. Overall calls outpaced puts by nearly 5 to 1.
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