Calls buy more time for rally in LifeLock
A large trader is extending a bullish position in LifeLock.
optionMONSTER's monitoring system detected the sale of 7,962 July 16 calls sold for $0.30 and the purchase of 7,000 August 16 calls for $1.05 and $1.10 yesterday. Volume was below open interest in the July contracts, which expire at the end of this week, indicating that a bullish position is being rolled forward by a month.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
LOCK rose 0.57 percent to $15.99 yesterday and is up 31 percent in the last three months. The identity-theft protection company is expected to report earnings after the close on July 27.
Overall option volume was 7 times greater than average. Calls outnumbered puts by a bullish 220-to-1 ratio.
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