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A slow grind for Jive Software?

Chris McKhann (chris.mckhann@optionmonster.com)

One investor thinks Jive Software will keep grinding higher in coming months.

optionMONSTER's tracking programs showed more than 10,000 JIVE options trade yesterday, more than triple its daily average for the last month. A trader bought 4,000 March 10 calls for $0.08 against open interest of 4,523 and sold 4,000 July 12.50 calls for $0.23, below the listed bid price at the time. The previous open interest at that strike stood at just 375 contracts, indicating that a new position was established.

He or she probably owns shares in the maker of social media-marketing software and had sold the 10s as part of a covered call . Making the adjustment brought in a credit of $0.15 and raised by $2.50 the level at which they must exit the stock. It also keeps the investor in the trade for an additional four months. (See our Education section)

JIVE rose 2.94 percent to $8.76 yesterday. It hit a low of $7.11 three weeks ago but is down from above $18 last July.

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