U.S. Markets closed

How bulls are playing Microvision

David Russell (david.russell@optionmonster.com)

Someone's looking for Microvision to rally by early next year.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,000 May 3 calls for $0.70 and the sale of an equal number of November 3 calls for $0.35 yesterday. Volume was below open interest in the shorter-dated contracts, which suggests that an existing position was rolled forward in time.

Making the adjustment cost $0.35 and allowed the investor to stay positioned for gains for an additional six months. The long calls lock in the price where shares can be purchased and carry less risk than buying the stock outright. (See our Education section)

MVIS rose 2.59 percent to $3.17 yesterday. The small-cap maker of projection systems doubled in value between February and March after receiving orders from large, undisclosed customer, and shares have been consolidating since.

The 200-day moving average has almost caught up with the stock following that big surge, which could make some chart watchers think that it's ready to climb again. Short interest at 20 percent of the float could also draw buyers.

Total option volume was 22 times greater than average in the session, with calls outnumbering puts by more than 100 to 1.


More From optionMONSTER