Stocks quoted in this article:
Portal Software (PRSF – 13-3/4) has won a major contract to provide AOL Time Warner (AOL – 56.23) with billing and business management software. This multimillion-dollar, multi-year contract is the biggest win yet for PRSF, who overcame stiff competition from rivals. Analysts have made positive comments about the implications of this deal for PRSF's quarter and long-term business.
PRSF shares have taken a nasty tumble from their 86 high of last February all the way down to 4-3/4 last month. With end-of-year tax selling out of the way, this month has brought back some positive momentum. PRSF ran up from 5-1/4 to 12 within two weeks this month, a whopping 128-percent gain. Today, the shares experienced a bullish gap when they opened at 13-1/2, after closing at 10-5/8 Friday. But, they have fallen a point from their 14-3/4 high this morning.
Before this announcement, there was already an accumulation of PRSF calls at the February 10 strike, where 3,748 contracts reside. Today, 420 contracts of that option have changed hands. Additionally, 520 contracts of the February 12-1/2 strike call have traded and another 385 of the March 17-1/2 call. Also, one investor opened a spread position of 1,000 contracts of the April 20 strike put and call.