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How bull is playing Constant Contact

David Russell (david.russell@optionmonster.com)

One big investor is looking for more upside in Constant Contact after the email-marketing company rallied on a strong earnings report.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 3,000 March 35 calls for $1.40. A block of 3,750 November 25 calls was sold at the same time for $3.30 against previous open interest, which indicates that an existing position was closed and rolled to the higher strike.

Long calls lock in the price where a stock can be purchased, providing inexpensive exposure to a rally. Adjusting the trade today let the investor recover $817,500 of capital, while giving him or her the chance to profit if it continues to climb. (See our Education section)

CTCT is up 18 percent to $27.17 in morning trading after third-quarter profit of $0.29 beat the $0.24 average analyst estimate. It's up 60 percent in the last year.

Total option volume is more than 100 times greater than average in the name so far, with calls dominating the activity.

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