Teradata Draws Upside Trades
Cloud-computing stocks have been active recently, and yesterday the bulls turned to data-warehousing company Teradata.
OptionMonster's tracking systems detected an early volume spike in the June 60 calls, with large blocks crossing for $0.80 and $0.85. Those contracts lock in the price where the stock can be purchased, which can result in some nice leverage in the event of a rally.
And that's what happened yesterday. TDC traded around $56.90 when the calls pushed higher before eventually closing the session up 2.88 percent at $58.24. The options, meanwhile, inflated more than 50 percent to $1.30.
Teradata's last earnings report in early May was weak as management cited customer "belt tightening." It touched a 52-week low on an intraday basis after that release, but then reversed and has been steadily climbing ever since.
Total option volume was five times greater than average in the session, with calls outnumbering puts by a bullish 17-to-1 ratio.
—By CNBC Contributor David Russell
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David Russell is a reporter and writer for OptionMonster. Russell has no positions in TDC.