By David Russell of OptionMonster
VeriFone Systems (PAY) has pulled back to $33 and now the bulls are stepping in.
OptionMonster's tracking programs detected the purchase of about 3,200 September 37 calls for 50 cents to 60 cents. Volume was about twice previous open interest at the strike, which indicates new money was put to work on the long side.
Calls lock in the price where investors can buy shares in the maker of credit-card readers. They can generate significant leverage if shares move in the right direction, providing investors with cheap exposure to a rally. (See our education section.)
VeriFone fell 0.09% to $33.15, roughly the same level where it consolidated between March and May. Its last two earnings reports beat expectations, and the next set of numbers is due on Sept. 4. Monday's contracts will benefit from a strong release.
Total option volume was nine times greater than average in the session, with calls outnumbering puts by 50 to 1.
(A version of this post appeared on InsideOptions Pro yesterday.)