NetApp Sees Huge Options Bet on Earnings
NetApp is seeing huge call volume Monday, ahead of its quarterly report Wednesday after the close.
Average trading over the last 30 days was 3,800 contracts, but some 13,000 calls had changed hands by midday alone. That also dwarfs the put tally, which was a scant 1,400.
The bulk of today's activity has been in the March 22.50 calls, acccording to OptionMonster's tracking systems, which identify unusual options activity. The June 20 calls also top open interest and trade exclusively on the offer.
- NTAP: Insider Trades
- Who Owns NTAP?
NTAP stock was above $26 in September, but bottomed at $10.39 in early November. Since then the data storage company has steadily climbed and now stands at $16.33.
At one point today the shares reached $16.74 after a Barron's article called the company recession-resistant. It quoted an analyst as saying that NetApp could see its sales rise 15 percent to 20 percent as demand data storage for data storage remains strong even as the personal computer market weakens.
I have positions in NTAP.
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.