BMC Bulls Look for an April Run

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- BMC Software ( BMC) lit up our screens Monday as the bulls looked for it run higher over the next month.

OptionMonster's tracking systems detected some players stepping into the name early Monday, with the April 40 calls trading in size for 54 cents and 55 cents. More than 2,600 changed hands in the session versus previous positioning of just 180 contracts.

Those calls lock in the entry price investors must pay to buy the stock. This can provide major leverage if the stock moves in the right direction, but the calls will expire worthless if BMC doesn't go up.

BMC rose 0.29% to $38.71 Monday. It has enjoyed a solid performance for 2012 after a rocky ride last summer. The company develops software that provides system and service management for corporate computers.

Overall call volume outpaced puts by about 3,000 to 200, a reflection of the bullish sentiment. Total activity was more than four times the average amount.

Najarian has no positions in BMC.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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