Bulls hoping SLM will make the grade
Mike Yamamoto | [email protected]
optionMONSTER's Heat Seeker tracking system shows that 3,688 October 17 calls traded yesterday in a strong buying pattern for an average price of $0.58. The volume was well above the strike's open interest of 1,899 contracts at the beginning of the day, indicating new activity.
SLM rose 3.9 percent yesterday to close at $17.31 after hitting an intraday high of $17.41. Those are the highest levels since September 2008 for the company, also known as Sallie Mae.
Yesterday's call buyers are looking for SLM to make modest gains by expiration at the end of next week, two sessions after the company's third-quarter earning report on Wednesday. Compass Point initiated coverage of the name yesterday with a "buy" rating. (See our Education section)
Overall option volume in the name was more than 19 times its daily average yesterday. Calls outnumbered puts by nearly 5 to 1, a reflection of the session's bullish sentiment.