Is FLIR Ready to Pop 11%?

Shares of FLIR Systems (FLIR) are trading higher on the session by 0.68%, trading at $20.11. The stock has been consolidating between $21.35 and $19.50 over the past two months following strong buy activity in late-July.

With shares having worked off their short-term overbought condition, one trader is stepping up to the plate to buy calls here. A short while ago, the November $22 call was purchased 1,000 times, on the offer, for $0.25-0.30. There was no previous open interest on the strike.

With implied volatility trading just above it’s three-month low, currently at 25%, buying the calls for 31% vol shows how interested the trader is in obtaining upside exposure.

Breakeven on the trade is +11% versus current prices. The trader clearly believes that FLIR can pop out of its recent range and make new three-month highs.

FLIR Systems, Inc. is a designer, manufacturer, and marketer of thermal imaging systems. The company's advanced sensors and integrated sensor systems enable the gathering and analysis of information through a variety of applications in commercial, industrial, and government markets worldwide.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.