OptionsHouse

Options Trading News

February 7, 2012  Tue 3:16 AM CT

FSIV: SEE CHART GET CHAIN FIND STRATEGIES
Fiserv hit an all-time high after reporting earnings results at the end of last week, and traders are betting on even more upside in the financial-service technology company.

More than 3,000 June 75 calls were bought for $0.40 and $0.45 yesterday, according to optionMONSTER's Heat Seeker system. The previous open interest was just 125 contracts, so these are new positions.

FISV closed yesterday down 1.02 percent to $65.21. The company met fourth-quarter earnings estimates and beat revenue forecasts after last Thursday's close and spiked to a lifetime high of $60.66 the day after.

For the calls purchased yesterday to turn a profit, the stock would need to gain nearly 16 percent by the time they expire in mid-June.

Option volume in the name totaled 3,177, more than 12 times its daily average. Only 7 puts traded in the entire session, a reflection of yesterday's bullish bias.
Share this article with your friends


OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »