A long-term trade is betting that Symantec's run is far from over.
optionMONSTER's Heat Seeker monitoring program detected the purchase of more about 13,300 January 2015 25 calls for about $3.38. Some 8,000 January 18 calls were sold at the same time for $6.65, but volume was below open interest at the strike.
This suggests that the investor came into the session having made huge profits in the 18 calls. He or she then closed that position and rolled it out by a year to maintain long exposure at a higher strike. The trader collected a credit of $824,600 in the process.
The new position will also perform similarly with the old one because it has roughly the same delta of about 7,000. So, the net result of the transaction is that the investor kept the same leverage, while recovering capital and adding time. (See our Education section for more on how options can be used to manage trades.)
SYMC is up 1.12 percent to $24.49 in midday trading and has risen 30 percent so far in 2013. The maker of Internet-security products has been rallying hard this year after breaking long-term resistance around $20.
Total option volume is quadruple the daily average so far today, with calls outnumbering puts by more than 200 to 1.
More From optionMONSTER
- Bulls come back to Hercules Offshore
- Why trader is selling calls in Pandora
- Warning signals in volatility action?