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Option Bulls Make a Hard Drive for OCZ Technology
CNBC.com | March 23, 2012 | 06:31 AM EDT

OCZ Technology Group

has been a monster stock in the past, and now the bulls are coming back to hard-drive maker.

OptionMonster’s tracking systems show that buyers were targeting the June 8 calls yesterday, snapping up 5,000 contracts for $0.80 against open interest of just 613 options, so these are new positions. They also sold 2,500 June 10 calls for $0.225, but volume was below previous open interest at that strike and could indicate closing positions.

OCZ Technology Group

Callslock in the price investors must pay for the stock, so they can deliver significant leverage if shares move in the right direction. The traders might have sold the June 10 calls to roll down to the lower strike, or both legs could have been new positions as part of a bullish call spread. Either way, traders are expecting the stock to gain in the next three months.

OCZ shares fell 3.73 percent to $7.49 yesterday and is down 13 percent in the last month. The stock more than quadrupled between August 2010 and April 2011, but has been swinging wildly since then. It’s now back near the same $7.50 level where it peaked in December and is trying to hold above its 200-day moving average, which some chart watchers may consider bullish.

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