Affiliated Computer Services is drawing upside options activity after announcing a spate of new business initiatives announced in recent weeks.
Traders were focused on the July 50 contracts, where more than 2,000 calls changed hands yesterday, more than five times the open interest and dwarfing the average daily options total of 169 at all strikes combined. Nearly all the calls traded in a strong buying pattern, and more than 73 percent of them were included in a single block for $0.45, according to OptionMonster's tracking systems.
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The information technology company finished the session up 1.27 percent to $46.13. Affiliated Computer Services has come a long way from its November lows under $35, but since April it has been stuck in a range roughly between $44 and $50. The shares would need to gain about 9.5 percent by mid-July for yesterday's calls to turn a profit.
The company made public several new products and partnerships this week, ranging from mobile applications for smartphones and on-board taxi scanners to credit card payment machines at airports. Affiliated Computer has also been active in strategic deals in the last month, including an alliance with Novell and the acquisition of British technology company Anix for $50 million.
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Mike Yamamoto is an analyst and writer for OptionMonster.