Vocera Communications, Inc (VCRA) provides mobile communication solutions through both voice communications and messaging solutions. The company’s stock is currently trading around $17.15 in a 52 week range of $11.99-$29.47. The stock has been under performing the market this year with shares losing over 30% year to date. Despite this weakness options traders have been placing large bets on further upside in VCRA. Early in today’s session a trader bought 2,900 VCRA Jan 20 calls for $0.60. This block represents volume in 2.7 times the average daily option volume in VCRA. This bullish bet adds to activity we saw earlier this week when a trader bought 1,800 VCRA Dec 20 calls for $0.30. The VCRA chart is relatively neutral but the huge amount of upside call buying we’ve been seeing is more than enough signal to get long VCRA in a stock swing trade.
Trade: Buying VCRA Stock for $17.25 with a stop at $16.45
Risk: $0.80 per 1 lot
Target #1: $17.65
Target #2: $18.05
Target #3: $18.85
