Seagate Technology lit up our screens with upside call activity yesterday as the stock hovered just above its 100-day moving average.
Despite a slow trading day, OptionMonster's tracking systemsshowed that more than 12,000 May 22 calls changed hands in a strong buying pattern against open interest of just 851 contracts. The bulk of the calls at that strike, which have averaged a mere 48 per day for the last month, were purchased for $0.25 to $0.30.
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The data-storage maker closed yesterday down 3.86 percent to $18.17, just a hair above the 100-day average shown by the purple line at right. If STX can manage to hold these levels, its chart indicates that the stock may head higher.
Seagate is expected to release its next earnings report in late April. The stock would need to gain roughly 22.5 percent for the calls purchased yesterday to turn a profit.
Total option volume in the name is nearly triple its average daily turnover at about 41,500 contracts today, nearly 29,000 of which were calls.
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Najarian own a long call spread in STX