OptionsHouse

Options Trading News

February 10, 2014  Mon 12:20 PM CT

ANGI: SEE CHART GET CHAIN FIND STRATEGIES
A large trader is hoping for a good number when Angie's List reports earnings this week.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 4,630 February 20 calls for $0.60 and the sale of an equal number of February 22.50 calls for $0.20 today. Volume is above the previous open interest at each strike, indicating that new positions were initiated.

Known as a bullish call spread, the trade cost $0.40 and will generate a profit of 525 percent if the heavily shorted Internet stock closes at $22.50 or higher on expiration. (See our Education section for more on the trade, which lets the investor position for a rally with limited risk.)

ANGI is down 1.37 percent to $17.23 in afternoon trading. The consumer-review service cratered in early October after lowering membership fees, drifted as low as $11.88 in late November, and has been rebounding since. Quarterly results are scheduled to be announced on Wednesday afternoon.

Total option volume in ANGI is quadruple its daily average so far in the session, according to the Heat Seeker. Overall calls outnumber puts by more than 17 to 1.
Share this article with your friends


Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »