Seagate: What Options Traders Think
Seagate Technology climbed as much as 11 percent Tuesday after unveiling a new product line, but options movement suggested traders are expecting more upside in the stock.
Call options in the disc driver maker exceed normal trading volume by 10 times. Based on heavy trading in June contracts, one idea is Seagate may be considered a takeover candidate.
By mid session, the volume had already topped the volume of the past 30 days — 6 times over. In the staid world of computer hardware, that's not likely to have been caused by a product release.
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Having said that, the debut of Seagate's BlackArmor suite for small businesses and self-employed entrepreneurs was fortuitously timed as the Nasdaq 100 index was down over 1% today. Rivals Western Digital and SanDisk also climbed, though not quite to the same extent.
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.