Options Traders Bet on Gains for McAfee

By Jon "DRJ" Najarian, co-founder of OptionMonster

McAfee(MFE Quote) has been caught in a fairly tight trading range for much of the last two months, but options traders are betting that the computer security company will move significantly higher by mid-August.

Trading was concentrated Monday at the August 45 strike, in which more than 8,800 calls changed hands in a strong buying pattern, according to OptionMonster's tracking programs. The bulk of the volume, which was roughly eight times open interest, came in blocks of 1,313 to 1,662 contracts for 65 cents to 75 cents.

McAfee shares closed Monday up 1.2% to $41.22. The stock had been climbing sharply since early March but leveled off around May 1 and has been trading mostly between $38 and $41 since then. ...