WBSN – Websense Inc. – Shares of the provider of web filtering and security, data loss prevention and email and anti-spam and security solutions fell 4.00% to $20.14 as of 3:30 pm (ET). Contrarian options players expecting shares of Websense to rebound sharply ahead of August expiration initiated plain-vanilla call buying on the stock. Investors picked up roughly 3,300 calls at the August $20 strike for an average premium of $1.46 per contract. Call buyers at this strike price make money if shares of the underlying rally 6.55% to surpass the average breakeven price of $21.46 by expiration day in August.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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