Options action turned bullish for McAfee (MFE) as traders bet the security software maker will rally past $45 by July expiration.
Volume in the July 45 calls rose to 3,406 against open interest of 1,260 contracts, according to optionMONSTER's Heat Seeker monitoring system. The options changed hands for $0.05 to $0.30, with purchases accounting for the bulk of the activity.
MFE is up 4.28 percent to $41.88 in morning trading, and must gain about 9 percent more for the calls to turn a profit. The stock had traded between about $37.50 and $41 for the last two months, before a wave of heavy buying pushed it through the top of that range today.
MFE doesn't have any catalysts on its calendar before July expiration. Volume in the name is four times average today, with calls outnumbering puts by 4 to 1.
(Chart courtesy of tradeMONSTER)