By David Russell, reporter at OptionMonster
NEW YORK -- Unisys (UIS) has been bleeding lower despite a strong earnings report in April, and now the bulls are back.
OptionMonster's tracking systems detected the purchase of more than 5,000 July 17 calls on Friday, most of which priced for 52 cents to 60 cents. Open interest going into the session stood at just 60 contracts, so new positions were clearly initiated.
Those calls lock in the price investors must pay to buy shares of the IT company, so they can generate some nice leverage in the event of a rally. But they will also expire worthless if it doesn't move.Unisys shares rose 0.98% on Friday to close at $15.38. The stock gapped higher on April 25 after profit and revenue beat expectations but then retreated to prices near its 2011 lows as the rest of the market declined. Friday's call-buyer apparently thinks that the stock has fallen too far and will now rebound. Overall option volume was more than 30 times greater than average in the name. Calls outnumbered puts by a bullish 16-to-1 ratio. Russell has no positions in UIS.