This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ADC Telecom Call Buyers See Long Run

By David Russell, reporter at OptionMonster

EDEN PRAIRIE, Minn. ( TheStreet) -- ADC Telecommunications (ADCT) is breaking out and the bulls are looking for a prolonged run.

OptionMonster's tracking systems detected unusual buying in the January 10 calls, which traded 7,080 times for 45 cents to 65 cents. Volume was almost six times open interest in the strike.

The maker of broadband equipment rose 4.99% to $8.21 Tuesday and is up 14% in the last month. The stock gapped higher after issuing better-than-expected earnings on Feb. 9. (It's also been favorably mentioned by Jim Cramer.)

ADC spent most of March consolidating between $7 and $7.50 and then started rallying despite bearish options activity late last month.

Tuesday's call buyers are looking for shares to rally past $10 by January expiration and may be hoping for the stock to fill a bearish price gap that occurred on July 23, 2008. Traders may also expect the company to announce positive earnings when it reports May 5.

Overall option volume in the name was 20 times greater than average in the session, and calls accounted for 96% of the activity.

At the time of publication, Russell had no positions in the stock mentioned.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports