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

Bulls Want a Pop From Fortinet

By David Russell, reporter at OptionMonster

NEW YORK -- The bulls hope for more good news from Fortinet (FTNT), which gapped higher after a strong earnings report earlier this year.

OptionMonster's tracking programs detected the purchase of 8,758 May 23 calls for $1.50 and the sale of an equal number of May 26 calls for 47.5 cents. Volume was more than triple the previous open interest at each strike, indicating that new positions were initiated.

Owning calls locks in the level where investors can buy shares, while selling them fixes a potential exit price. Thursday's traders will buy the network-security stock for $23 and sell it for $26 if it rallies to the higher price. It cost them $1.025 to open that $3 spread, a profit of 193% on a move to $26.

Fortinet shares rose 0.45% to $22.31 Thursday. Following the rally in late January, the stock consolidated and has now pulled back to the same $22 level that was resistance in December. The company hasn't yet announced the date for first-quarter earnings, but last year it occurred on April 24.

Total option volume was 21 times greater than average in the session, with calls outnumbering puts by a bullish 96-to-1 ratio.

Russell has no positions in FTNT.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs