EMC Draws Stubborn Buyers
Call buyers stubbornly returned to EMC yesterday, even through the cloud-computing stock has lagged the rest of the market.
Option traders looked for upside in the June contracts, snapping up almost 16,000 of the 24 calls, with the largest block priced for $0.25, according to OptionMonster's tracking systems. The volume was almost triple the strike's open interest before the session began, indicating fresh activity.
Those calls lock in the price where the stock can be bought no matter how far it might rise. They can provide some nice leveraged gains from even a small pop in the share price over the next month.
EMC fought back from earlier losses after the calls hit and closed the session up 0.09 percent to $23.02, but it is still down about 10 percent in the last two months. Management also appears at the JPMorgan Technology, Media and Telecom conference this morning, so those buyers are apparently hoping for some positive comments.
Overall EMC calls totaled 25,000 versus just 5,000 puts, a reflection of the day's bullish sentiment.
—By CNBC Contributor Pete Najarian
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian has no positions in EMC.