Andrew Houghton and Nick Atkeson

   

Rackable Systems (RACK) presents a nice combination of a stock that has about a year-and-a-half to base and bullish call options that signal its recent share appreciation may have further to go.

On May 2, option investors purchased more than 2,000 RACK Sept 10 Calls (RQOIB) and 2,000 RACK Sept 12.50 Calls (RQOIV). Open interest in those two lines jumped up, showing these buyers are opening their positions.

With the stock having recently broken through its 10-, 20-, 50- and 200-day moving average lines to the upside, this might be a time to place a bet on RACK.

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