Ancestry.com has pulled back after ripping higher, and the bulls are stepping in.
optionMONSTER’s Heat Seeker monitoring system detected the purchase of 2,500 October 30 calls for $2.85 and the sale of an equal number of October 35 calls for $0.75. Volume was above open interest at both strikes, indicating a new position was initiated.
It cost $2.10 to open and will earn a profit of 138 percent if the stock closes at or above $35 on expiration. The strategy is known as a bullish call spread because it will leverage a move between two prices.
— Option Monster