Lifelock Inc (LOCK) Traders Eye a Sustained Move Higher

Lifelock Inc (LOCK) call buyers are counting on a move back above $13 by February expiration

Jan 22, 2016 at 2:58 PM
facebook X logo linkedin

Fraud protection provider Lifelock Inc (NYSE:LOCK) is up 0.7% at $12.16, finding a foothold atop its 100-day moving average just a day after sinking on some major C-suite news and an update to its full-year outlook. Still, the shares have come a long way since their August low of $7.18, largely due to a late-October settlement with the Federal Trade Commission (FTC).

In today's trading, calls are flying off the shelves at four times the expected intraday rate. Almost all of the activity is transpiring at the out-of-the-money February 13 call, where 1,000 contracts are on the tape. Speculators buying to open these calls expect LOCK to muscle back atop $13 by the close on Friday, Feb. 19, when the front-month options expire. The stock was sitting north of this strike as recently as yesterday.

Bullish bets are standard fare for LOCK options traders. During the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has amassed a call/put volume ratio of 2.06 -- in the 92nd percentile of its annual range. In other words, traders have been buying to open calls over puts at a faster-than-usual clip in recent months.

Analysts are high on Lifelock Inc (NYSE:LOCK), too. Three-quarters of covering brokerages rate the stock a "buy" or better, with not a single "sell" rating to be found. Plus, the consensus 12-month price target of $17.75 stands in territory not explored since December 2014.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI