Option Bulls Make a Hard Drive for OCZ Technology
Callslock in the price investors must pay for the stock, so they can deliver significant leverage if shares move in the right direction. The traders might have sold the June 10 calls to roll down to the lower strike, or both legs could have been new positions as part of a bullish call spread. Either way, traders are expecting the stock to gain in the next three months.

OCZ shares fell 3.73 percent to $7.49 yesterday and is down 13 percent in the last month. The stock more than quadrupled between August 2010 and April 2011, but has been swinging wildly since then. It’s now back near the same $7.50 level where it peaked in December and is trying to hold above its 200-day moving average, which some chart watchers may consider bullish.

Sentiment has also been positive in other companies in the same space, such as Western Digital and Seagate Technology, which make traditional hard drives. OCZ makes new-generation solid-state computer hard drives.

Overall option volume was 12 times greater than average in yesterday’s session, with calls outnumbering putsby a bullish 29-to-1 ratio.

—Russell has no positions in OCZ.

Additional News: Hitachi Books $2.4 Billion Profit on Hard Drive Unit Sale

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David Russellis a reporter and writer forOptionMonster .

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