Trade #2 purchase CX calls

I am constantly looking for opportunities. There are several things I scan to search for opportunities but Twitter can be a great source and it is free.

I noticed a Tweet on CX this morning describing unusual options activity. I like to investigate the activity to see if it is a trade that I would like to tag along. Here are a couple things that is working in my favor on this trade.

1. Volume: at the time I placed the trade there was a current volume on the February 17th 2017, 8 strike, call contract in CX, the volume was 1082. The way I tell whether this is significant or not is by looking at open interest which was 345. This tells me that this activity must be more buying as there is not enough current options contracts to close.

2. Trend: The current trend for this stock over the past year has been bullish, this is a bullish play so it is not going against the longer term trend.

3. Earnings: Today is January 17th and Earnings announcement occurs on February 9th. This is an advantage because Implied Volatility will likely increase as we approach earnings which in turn will increase option price. I will not hold this position through earnings.

Purchased 25 contracts.

CX 8 calls expiration Feb 17th

Price $.48 Limit