Allot Communications (ALLT) is trading around $13.00 and could be looking to break to the upside soon. We’re seeing big bets come across the tape today with traders getting long ALLT. The stock has strong support just below the $13.00 level and continued consolidation on volume would be indicative of a potential breakout. Look for that to happen over the next month or so, possibly sooner.
The stock is down 14% on the year so far but has found buyers recently. It has been trading in a 52-week range of $11.52-$18.09. Though it is trading below the cloud currently, we use the unusual activity and volume to determine that this might be a good time to get long ALLT.
Buy ALLT Dec 12.5 Calls for $1.95
Risk: $195 per lot