Rally Has VASCO Data Security International, Inc. (VDSI) Calls Flying

VASCO Data Security International, Inc. (NASDAQ:VDSI) short sellers could be feeling the heat

by Alex Eppstein

Published on Jun 3, 2015 at 2:00 PM
Updated on Jun 24, 2020 at 10:16 AM

VASCO Data Security International, Inc. (NASDAQ:VDSI) calls are flying off the shelves this afternoon -- tripling the expected intraday amount, and quadrupling the number of puts on the tape. Most active is the June 30 call, where it appears new positions are being purchased.

At last check, the tech stock was up 5.6% at $28.50. However, by purchasing the out-of-the-money calls, options traders think VDSI will charge even higher -- toppling the round-number $30 level by the close on Friday, June 19, when front-month options expire. The shares haven't explored territory that high since mid-February, when they soared to a seven-year peak of $31.84.

Technically speaking, VDSI's strong movement today has brought the stock into the black on a year-to-date basis. Year-over-year, however, the shares have been far more memorable, soaring 167% -- and benefiting from recent bounces off their 80- and 200-day trendlines.

It looks like short sellers are getting burned today. Over 46% of VASCO Data Security International, Inc.'s (NASDAQ:VDSI) float is dedicated to short interest. At the stock's average daily trading level, it would take over two weeks to repurchase all of these shorted shares.

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