Riverbed Technology has been coming back from a steep drop last month, and traders see more upside ahead.

The company, whose Steelhead products enable customers to improve the performance of applications and access data across networks, disappointed Wall Street on guidance in late January. The stock gapped down near $24, but has been recovering since then, getting an upgrade from Pacific Crest last week with a $34 price target.

Riverbed’s shares swung in a wide range on Friday, and the option paper was flowing. The March 32 calls really stuck out, with large blocks from $0.23 to $0.52. The Feb. 30s also shot up from $0.15 to $0.29, according to OptionMonster’s real-time tracking system.

Those contracts lock in the price that traders must pay to buy shares, so they can deliver major leverage if the stock moves in the right direction. However, the calls are also susceptible to losing all their value if Riverbed doesn’t rally.

Riverbed shares

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[RVBD  Loading...      ()   ] ended Friday’s session down 0.22 percent to $27.67. More than 25,000 options traded in the name, compared with about 13,000 in a typical day.

—Najarian has no positions in RVBD.

Additional News: Riverbed Technology Quarterly Profit Jumps 53 Percent

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com.

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