NEW YORK -- NCR
(NCR) fell sharply after reporting earnings last month, but traders apparently believe they'll get a chance to ring up some profits in coming months.
OptionMonster's trade scanners showed that 2,800 January 33 calls were bought, mostly for $2.25 to $2.35. Volume was more than 19 times the previous open interest in the strike, which indicates that new money was put to work.
These calls lock in the price where investors can buy shares in the maker of ATMs and cash registers, letting them cheaply position for a rebound. Monday's contracts are especially noteworthy because they are in the money, which means that they will track the share price closely and give them significant leverage to a rally.
NCR fell 1.69% to $34.38 on Monday. The stock traded for more than $40 before gapping lower on a weak revenue number in late October.
Total option volume in the name was twice the daily average for the last month, with overall calls outnumbering puts by more than 10 to 1.
Yamamoto has no positions in NCR.