Silicon Motion Technology has been pulling back from a monster run, and the bulls are stepping in.
OptionMonster's real-time tracking systems detected the purchase of almost 5,000 February 20 calls against open interest of just 689 contracts. Most of them traded for $0.75 to $0.80.
These calls lock in the price investors must pay to buy shares, so they can generate major leverage if the stock moves in the right direction. But the options can also lose all their value if a rally doesn't occur before they expire at the end of next week.