Bulls bet Digital River's tide is rising
Traders turned bullish on Digital River as its beaten-down shares rebounded yesterday.
Nearly 7,000 December 15 calls traded in a strong buying pattern, starting with a print of 5,000 that went for $0.20 and rising to premiums of $0.45 as the stock rallied, according to optionMONSTER's Heat Seeker tracking system. The volume dwarfed the strike's open interest of 207 contracts at the start of the session, so these are clearly new positions.
DRIV rose 5.07 percent yesterday to close at $14.31 after trading near $13 in recent days, just above its 52-week lows. The cloud-computing company has been on a wild ride that has seen shares gap higher and lower several times all year.
Yesterday's long calls are looking for DRIV to gain roughly 7 percent by expiration in less than a month. That follows bullish activity earlier this month , when traders were buying January 17 calls. (See our Education section)
Overall option volume in the name was more than 26 times its daily average in the last month. Only 274 puts traded in the entire session, a reflection of the day's bullish bias.
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