By David Russell
Iron Mountain (NYSE:IRM) is showing signs of breaking free from a six-month downtrend, and now some bulls are looking for a rebound higher.
optionMONSTER's Heat Seeker tracking program detected the purchase of about 3,000 April 25 calls for $0.40 to $0.50 against open interest of only 1,344 contracts. The trade pushed options volume in the document-management company to almost six times greater than average.
IRM is up 0.39% to $23.07 in late morning trading but has lost 21% of its value in the last six months. The shares have been drifting lower despite management issuing better-than-expected guidance the last time it reported earnings on Oct. 29. The next release hasn't been scheduled yet.
The stock made a slightly higher low in recent sessions after pushing steadily lower since July. Some chart watchers may interpret the price action as evidence that IRM is getting ready for a rebound.
That's apparently what today's call buyers hope. The stock must rally about 10% by expiration for them to make money.
Calls outnumber puts by a bullish 34-to-1 ratio so far today.
(Chart courtesy of tradeMONSTER)