Then in the final minutes of trading, the attention shifted to BlueCoat and CommVault, with the December 20 calls and the January 55 calls bought in each, respectively.
All four stocks rallied 4-6.5 percent, and all the calls purchased were out of the money. This means that traders are looking for the shares to continue higher in coming weeks.
Because they lock in the price at which a stock must be purchased, long calls tend to appreciate much more quickly than the underlying equity itself if it rises. The drawback is that they will expire worthless if a rally doesn't occur.
Overall option volume was 16 times greater than average in CommVault and 10 times above average in BlueCoat and Linear. In KLA it was about triple the average level, according to our systems.
Second Opinion: Jim Cramer Says Watch the Technicals
—Russell has no position in any of the stocks mentioned.
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David Russell is a reporter and writer for OptionMonster.