By Pete Najarian, co-founder of OptionMonster
Volume spiked in the August 27 calls and the September 30 calls, according to OptionMonster's tracking systems. The August 27s were sold for about 13 cents and the September 30s were bought for 8 cents and 9 cents, so it appears that traders were rolling positions to higher and out in time.
These calls lock in the price where the computer-security stock can be purchased, letting investors take cheap positions that will benefit from a rise in the shares. The traders can keep riding a rally without ever owning the shares if they so choose, limiting the amount of money at risk while having the potential for huge leverage.Symantec shares rose 0.11% to $26.96 yesterday. Trading in the name surged in June as the call buyers rushed in, with even more coming in the next month. Shares pushed to a 52-week high last Thursday, and some of those options were up more than 500 percent. Overall calls outpaced puts by 9,300 to 1,078, a further reflection of the session's bullishness. Najarian owns SYMC calls.
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