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How the bulls are playing Symantec

David Russell (david.russell@optionmonster.com)

Someone apparently thinks that Symantec's epic run is far from over.

optionMONSTER's Heat Seeker monitoring system detected a surge of call volume in the provider of Internet-security products, which is already up 80 percent since last July. The transaction included the sale of about 2,750 May 26 calls for $0.25 and $0.26, plus the purchase of about 6,000 June 28 calls for $0.15.

Volume was below open interest in the May calls but not the July contracts, which suggests that an existing long position was rolled ahead in time while increasing its size.

Making the adjustment cost roughly $20,000 and provides the trader with an additional two months of upside exposure . He or she also stands to earn more from a big rally because the number of contracts has been doubled, a highly bullish move. (See our Education section)

SYMC was down fractionally at $24.42 on Friday, having spent the last month consolidating at its highest levels since early 2005. The company has consistently beaten expectations for at least the last four quarters. The next earnings report is scheduled for May 7.

Total option volume was 4 times greater than average in the session, according to the Heat Seeker. Calls outnumbered puts by 11 to 1.

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