Thursday, February 17, 2011
Trade Idea: Long ONNN March 12 calls
ONNN has been consolidating sideways for a few weeks now and the chart looks like it could make a move to the upside. ONNN traded 17,680 calls today vs 17 puts. Average volume for this name is a little over 2k contracts a day. It appears traders are staying bullish as they roll out of Feb 11 calls and into March 12 calls. The March 12 call traded 10,893 (mostly on the offer) vs an OI of 1,918. IV30 was up 12% to 38.1 as the stock traded up 1% today. With a breakout of the bull flag, $12.5 to $13+ seems like a reasonable target. Keep an eye on this one.
No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.