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

McAfee ( MFE) 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.

For the calls purchased Monday to turn a profit, McAfee shares would need to rise at least 11% by the time the contracts expire on Aug. 21.

Traders appear to be regaining confidence in the computer security company after some high-profile cyber-attacks last week and a reduction of short interest in the overall technology sector in the last month. The company is scheduled to report second-quarter earnings on July 30.
At the time of publication, Najarian had no positions in any stocks mentioned.

If you liked this article you might like

How Your Portfolio Can Benefit from Cybercrime -- and It's Legal

How Your Portfolio Can Benefit from Cybercrime -- and It's Legal

Intel Set for More Security M&A

Intel Set for More Security M&A

Intel/McAfee Flesh Out Joint Strategy

Intel/McAfee Flesh Out Joint Strategy

Cisco Spooks the Street: Weekly Tech Recap

Cisco Spooks the Street: Weekly Tech Recap

Ingram Micro's Strong Sales Not Enough

Ingram Micro's Strong Sales Not Enough