Tableau Software Inc (NYSE:DATA) dropped 1.6% yesterday to close at $83.55, but remains more than 30% higher on a year-over-year basis. Meanwhile, calls were in demand Monday, as the contracts crossed at an 82% mark-up to the average intraday pace. What's more, traders zeroed in on short-term strikes, per the stock's 30-day at-the-money implied volatility, which rose 3.4% to 47.7%.
Most active by a mile was the front-month November 85 call, as roughly 2,500 contracts (including a sweep of 2,000) changed hands -- 87% at the ask price, suggesting buyer-driven activity. What's more, open interest soared overnight, making it safe to assume new bullish bets were initiated on DATA. This theory is echoed by commentary from Trade-Alert. By purchasing the calls to open, Monday's traders expect the shares to rally past $85 by the close on Friday, Nov. 21, when the options expire.
Looking at the charts, the $85 level has served as technical resistance in recent sessions. Even after last week's earnings-related bull gap, the stock wasn't able to maintain a foothold at this level. In fact, Tableau Software Inc (NYSE:DATA) hasn't closed above the strike since late March. As such, delta on the near-the-money call is just 0.42, or 42%.