OptionsHouse

Options Trading News

October 4, 2013  Fri 12:20 PM CT

P: SEE CHART GET CHAIN FIND STRATEGIES
Traders think the sky's the limit for Pandora Media, which has already tripled this year.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,600 March 30 calls for $4 to $4.20. Volume was almost 10 times open interest at the strike, indicating that new money was put to work on the long side.

These long calls lock in the price where the online music company can be purchased, letting investors cheaply control upside in the stock. They also can generate significant leverage. For instance a move of 40 percent in the share price will inflate those calls by more than 200 percent. (See our Education section)

P is up 4.1 percent to $27.52 in afternoon trading, just off its all-time high of $27.93 established yesterday. The company has been cited on our InsideOptions Pro service frequently, resulting in several huge winners as bears were forced to cover short bets and earnings surprised to the upside.

The last big move occurred on Sept. 12 after veteran Internet executive and adman Brian McAndrews was hired as chairman and CEO. The timing of the next quarterly release hasn't been disclosed yet, but last year's calendar suggests it will occur in early December.

Overall option volume in the Pandora is still below its full-session average, according to the Heat Seeker, but calls account for 60 percent of the total.

Share this article with your friends


Related Stories

P

Bulls play momentum in Pandora

August 7, 2015

The online radio service is up sharply since reporting earnings two weeks ago, and bullish traders are piling in for the second time in two weeks.

OptionsHouse

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 »