Stocks quoted in this article:
Brocade Communications (BRCD - 103) is a leading manufacturer of Storage Area Networking infrastructure. The shares have benefited mightily from the resurgence in the tech sector and have now added over 56 percent from their January 3 intraday low of 65-3/4.
From a technical perspective, it is interesting to note that BRCD's recent low marked a roughly 50-percent correction from its all-time high of 133-23/32, logged in late October. In addition, the pullback was supported by the stock's newly formed 20-month moving average.
In yesterday's trading, the February 85 call was active as traders added new positions. Over 22,000 contracts changed hands on this option yesterday, with virtually all of the volume translating into new open interest.<