Cavium Networks has been trading above a key level, and yesterday the bulls stepped in.
OptionMonster's scanning systems detected the purchase of 1,700 March 37 calls for $1.95. There was no open interest in the strike at the beginning of the day, which indicates that new positions were initiated.
Long calls lock in the price where investors can buy shares in the maker of networking chips. These options will generate some nice leverage in the event of a rally, but will expire worthless if the stock doesn't move.