Options Traders Jump on GLUU's Sudden Move
GLUU is trading higher amid heavy volumes
The shares of mobile game maker Glu Mobile Inc. (NASDAQ:GLUU) are rallying today, with some pointing to a very bullish presentation from Stansberry Research that suggested the stock could rise exponentially. Whatever the reason, GLUU is trading 12.6% higher at $6.32, with volume already at the highest point in over a year. Meanwhile, options are also seeing unusual interest today.
Jumping right in, almost 8,300 option contracts have already traded today, which is roughly four times the average daily volume. Most of the action is taking place on the call side, with the November 7 call standing as the most popular option by a long shot. Data gives the impression of buy-to-open activity here, suggesting bulls are betting on Glu Mobile stock rising above $7 in less than a month.
If GLUU shares continue their long-term trend, they could reach this level sooner rather than later. In fact, they were above $7 as recently as Oct. 5. The equity sports a year-to-date lead of 75%, and the recent pullback ended near the 200-day moving average, a trendline untouched since it acted as a floor back in April.
On the other hand, the security will need to contend with the 50-day moving average, currently docked right at the $7 mark. What's more, the $7 level is home to the equity's bear gap from early this month.
