Seagate Tech STX breaks out and has option buyers looking for more 52 week highs
Seagate Technology (STX) is seeing some bullish option buying take place in the January 19 call strike. More than 5,600 contracts have traded at that strike, exceeding the current open interest of 1,239 contracts or increase of about 300% in volume.
Order flow shows a bullish bias with most of the activity traded on the offer, with the largest block of 2,050 contracts that where bought for .25 cents per contract. Implied volatility is also seeing a pick up off 4% from yesterday's 41% level in January.
Taking a look at the weekly chart, prices have been able to push through a resistance level on a ascending triangle or bullish wedge formation. The last two days prices have been holding those prior levels of resistance which are acting as a level of support. Prices are just .18 cent away from punching to new 52 weeks highs, which could be the reason for traders looking for the next move to be higher.
This is the post that appeared in our OptionSIZZLE Elite subscription service yesterday, December 22, 2009.
Today, prices closed moved up .67% at $17.95, leaving the price on the January 19 calls unchanged at .30 cents.
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