Siebel Call Options Attract Bulls Once More - TheStreet

Investors were itching to get their hands on

Siebel Systems

(SEBL)

options today.

The implied volatility in Siebel options has climbed to 101 from 93 over the course of the past week, signaling something could be on the horizon for the software maker. Higher implied volatility can precede a major announcement from a company, whether it be earnings, the unveiling of a new product, an impending management change or anything else that would spark a dramatic movement in the share price in a relatively short period of time.

Despite a massive swipe at technology stocks yesterday by investment bank

Goldman Sachs

, large amounts of money poured into Siebel

call options. (A call option gives the holder the right, but not the obligation, to buy the underlying stock.) Yesterday it was the July 35 calls that received all the attention, trading 18,668 contracts on open interest of 668. The premium on those calls has jumped to $10.80 ($1,080 per 100) from $8.70 ($870 per 100).

"While the rest of the market swooned

Tuesday before the

Fed

announcement, we are following some big money flowing into SEBL, as if someone knows or anticipates news from the software maker," said Jon Najarian, president of

Mercury Trading

and founder of

1010WallStreet.com

.

The July 37 1/2 calls were again the weapon of choice for bullish investors as the share price continued to move upward. Siebel shares were up 18 cents to $42.62 in recent trading. The July 37 1/2 calls traded nearly 9,500 contracts on open interest of 713. The premium on those calls recently was listed at $8.40 ($840 per 100) on the

American Stock Exchange

.