Bulls come back to SAIC
For the second day in a row, SAIC attracted bullish attention in the option market.
On Monday traders were rolling calls to November from August, buying more time for upside positions. Yesterday OptionMonster's tracking systems detected another roll, this time from the August 14 calls to the September 15s, which were bought for $0.45 as more than 6,000 contracts traded at each strike.
These calls lock in the price where shares can be purchased, providing investors with cheap leverage in the event of a rally while limiting risk. The contracts could expire worthless if the stock doesn't rise enough, but traders would lose much less money than owning shares in a steep drop.
SAIC rose 0.21 percent to $14.63 yesterday. The cybersecurity company provides scientific, engineering, and technical services to the various Pentagon agencies.
Almost 20,000 options traded in the name yesterday. All but 138 of them were calls, reflecting the bullish sentiment in the session.
—By CNBC Contributor Pete Najarian
Options Trading School:
Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.