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Synaptics bull raises bet before earnings

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Synaptics has rebounded strongly ahead of its earnings report tomorrow, and one trader is looking for the technology company to reach new all-time highs.

optionMONSTER's Heat Seeker system detected the sale of 1,500 June 37 calls for about $4.53 and the purchase of 2,000 June 40 calls for $2.95. Volume was below open interest in 37 calls but above it in the 40s, indicating that a trader is closing a position in the lower strike and rolling it higher to reflect the recent surge in the stock price.

SYNA is up 1.28 percent today to $39.48 this afternoon. The maker of touch screens hit resistance at the $40 level earlier this month and fell below $36 last week, but the shares have erased those losses since Monday. The company is scheduled to release quarterly results after tomorrow's close .

The new long calls opened today, which lock in the purchase price of the stock no matter how high it might climb, are looking for SYNA to rally past $42.95 by in mid-June. That would be new territory for the shares, which hit a lifetime high of $41.49 in late March. (See our Education section)

Total option volume in the name has reached 4,800 contracts so far today, about 5 times its daily average for the last month. Only 44 puts have changed hands in the session.

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