The company provides seismic-imaging to drillers in the energy sector. It plunged hard in early August after earnings missed estimates but has been bouncing in a range since then.
Based on yesterday's call buying, a large trader expects ION to make a nice run in the next four weeks. The timing of the next earnings report hasn't been announced yet, but it should take place before the option expiration on Nov. 18.
The stock rose 5.98 percent to $7.09 in the session. It normally trades fewer than 500 contracts a day, so the activity in those November 8s was clearly unusual.
Second Opinion: Should You Really Buy Beaten Up Oil Stocks?
—Russell has no positions in IO.
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David Russell is a reporter and writer for OptionMonster.