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Investor sees more gains in Synaptics

David Russell (david.russell@optionmonster.com)

Synaptics has been on a tear, and one investor is giving it more room to run.

optionMONSTER's tracking programs detected the purchase of 1,000 April 35 calls for $2.22 and the sale of an equal number of April 39 calls for $0.52. Volume was below open interest in the 35s, indicating that an existing short position was closed and rolled to the higher strike.

The investor probably owns shares in the maker of mobile-interface products and had written the contracts as part of a covered call strategy. Because the original calls would have required the sale of shares for $35, the trader adjusted the position higher. He or she now has an additional $4 of potential upside, at a marginal cost of $1.70.

The decision to roll the position reflects a bullish outlook for the stock and a reluctance to exit the position too early. (See our Education section for more on how options can be manage trades.)

SYNA rose 1.58 percent to $36.05 on Friday and is up 50 percent since the middle of November. The company's last two earnings reports beat expectations as demand improved.

More than 2,850 SYNA options changed hands in the session, almost triple their daily average.

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