Silicon Graphics Bulls Position for Upside
By Pete Najarian, co-founder of OptionMonster
NEW YORK (TheStreet) -- Silicon Graphics (SGI) has struggled this quarter, but option activity was bullish Monday ahead of the company's earnings report later this week.
The activity started shortly after the market opened Monday, with buying in the August 13 calls. More than 2,000 of those contracts traded against very small open interest, and a few triple-digit blocks fetched 60 cents to 70 cents. Traders also bought more than 1,700 September 13 calls for $1.25 to $1.35, according to OptionMonster's real-time tracking systems.
The stock rose 7.16% to $13.17 Monday. It's been falling after a huge rally in the late winter and spring but is still positive for the year. The company, which delivers clustered computing and storage systems, will issue fiscal fourth-quarter results after the bell on Thursday.
More than 4,100 contracts traded Monday versus the name's daily average of 600. Of those, just 80 were puts, so the positioning was definitely looking for upside. Najarian owns SGI calls.Select the service that is right for you!
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