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Will ValueClick be true to its name?

Mike Yamamoto (mike.yamamoto@optionmonster.com)

ValueClick soared to five-year highs after beating earnings estimates yesterday, and traders are looking for another pop in the next month.

More than 5,000 March 26 calls traded in a strong buying pattern, led by a print of 4,372 that went for $0.60, according to optionMONSTER's Heat Seeker system. Open interest in the strike was only 1 contract before the session began, so these are clearly new purchases.

Those in-the-money calls, which lock in the price where traders can buy stock, are betting that VCLK will see another leg higher by March expiration a month from today. They could be sold at a profit before then if the stock continues to rally but will rapidly lose value if shares reverse lower. (See our Education section)

VCLK surged 19.56 percent to $26.10 yesterday after fourth-quarter profits and revenues came in higher than expected. The online-advertising network gapped higher from below $22, a level that had been resistance last May, and closed at their highest level since November 2007.

It was a big payday for traders who had bought March 24 calls for $0.30, as we cited on InsideOptions Pro on Wednesday. Those contracts ended yesterday's session trading for $2.30--a gain of more than 760 percent.

Total option volume in the name was just shy of 15,000 contracts yesterday, 22 times its daily average in the last month. Only 771 puts changed hands, a reflection of the session's bullish sentiment.

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