
In the stock market, price action tells you history, but volume often predicts the future. For investors watching the data infrastructure sector, a specific technical signal recently flashed, demanding a closer look. Pure Storage, Inc. (NYSE: PSTG) recently appeared on the Unusual Call Options list with a noticable 191% increase in volume.
To understand the significance of this, it is essential to understand what a call option actually represents. A call option is a financial contract that gives an investor the right to buy a stock at a specific price in the future. It is a leveraged bet. It allows traders to control a large amount of stock with less capital up front.