CA Technologies, Inc. (CA) Unusual Options Activity Leads to Profits for Traders

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CA Technologies, Inc. (CA) provides information technology management software and solutions. CA is trading at $29.91 around the middle of its 52 week range of $25.25-$33.42. Year to date the stock has underperformed the market, falling by 1.84%. The stock sold off today by about 0.37% or $0.11.

Early in the session a trader bought 3,000 of the CA August 33.0 Calls for $0.25 when the stock was trading at $30.06. This investor was most likely establishing a long term position considering the August Calls were bought instead of the June or July contracts. This order was recorded about half an hour after the open on OptionHacker, and the stock rose about $0.08 to $30.14 after the trade hit the tape. Over 3,136 contracts have been traded on that line today hinting at bullish sentiment. The CA August 33.0 Calls for $0.25 have traded as high as $0.50 today making this a profitable trade. This stock has been trading above and below the Ichimoku Cloud for a few weeks now. The Ichimoku Cloud continually switches between bullish and bearish clouds indicating varying trends. The cloud remains thin meaning there is not a dominant trend in the graph of CA.

Trade: A trader bought 3,000 of the CA June 33.0 Calls for $0.25
Risk: $25 per 1 lot
Breakeven: $33.25

If a trader bought a 20 lot of these Calls they would have profited $500 at the highs on $500 in risk. This is a great example of profitable UOA.

Andrew Keene

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