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August 1, 2010
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Vasco Data Security International (VDSI)
November 04, 2008Dear Fellow Big Money Traders,
Vasco Data Security International (VDSI) sells security systems that secure information assets on the Internet for e-business and e-commerce.
The Internet security business is not showing any signs of a slowdown. On Oct. 23, VDSI reported better-than-expected earnings and revenues and reaffirmed full-year guidance. On this announcement, options investors jumped in and bought the Nov 10 Calls. Not only did the stock jump up to about $11.50, but the volatility of the options also went up for a "double" payoff.
Option investors are back again. Yesterday, they were buying the VDSI March 15 Call options. The volume relative to open interest was 20%, with 81% of the volume being accounted for in open interest this morning. This qualifies in our view as a meaningful trade.
We recommend following these successful option traders by buying the VDSI March 15 Calls (QFNCC) for 95 cents or better. The company next reports earnings in mid-February, which will be captured in our March option expiration trade.
