NetApp, Inc. (NTAP) Call Buying Picks Up as Stock Soars

NetApp Inc. (NASDAQ:NTAP) is gaining today, last seen 1.4% higher at $35.78. In response, bullish speculators have stepped up. Calls are crossing the tape at 24 times the normal intraday volume, accounting for nine of NTAP's 10 most popular contracts. Leading the way is the June 40 call, where over 8,700 contracts have changed hands -- nearly three times as many as the next closest option.

Of the 8,700 June 40 call contracts that have crossed, 5,000 of them were bought to open by a single trader, for an initial cash outlay of $160,000 (premium of $0.32 * number of contracts * 100 shares per contract). This trader is betting on NTAP to topple the round-number $40 mark by June options expiration.

For this to happen, NetApp Inc. (NASDAQ:NTAP) will need to build on today's momentum and turn things around on the charts. Since the start of the year, the shares have dropped 13.7%, leaving analysts little choice but to take a bearish stance. Specifically, 75% of covering brokerage firms rate NTAP a "hold" or worse.