Cree has been rampaging higher, and the bulls jumped in yesterday.
OptionMonster's tracking programs detected the purchase of some 5,000 December 62.50 calls for $8.65 and the sale of an equal number of December 70 calls for $5.40. Volume was more than five times open interest at both strikes, indicating that new positions were initiated.
Owning calls lock in the price where the stock can be bought, while selling them obligates the investor to unload shares if a certain level is reached. The combination gives the investor control of the spread between two prices at a low cost.