Riverbed Technology (RVBD) has come under pressure today, but the overall options flow seems somewhat bullish. Shares are down $2.35 to $35.30 on no obvious company-specific news. Meanwhile, the top options trade is a 2,254-block of May 38 calls at $1.80 when the market was $1.65 to $1.80. Looks tied to 83K shares at $35.27 and might be a closing trade. Separately, the May 35 – 37 call spread is apparently bought at $1.10, 2000X; which is possibly a roll down in strikes, but appears to be a bullish play on the software maker. Shares have been under pressure lately, falling 21.4 percent from a 52-week high of $44.7 set on March 4. Earnigns come into play April 25 (after market). Oppenheimer said yesterday that channel checks indicate that Q1 sales are tracking ahead of expectations. However, it’s qualifying its view due to impact of Japan and valuation keeps them on the sidelines.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.