Call buyers return to Copart for more
Mike Yamamoto | [email protected]
More than 2,000 July 40 calls have traded in a strong buying pattern, led by a print of 1,676 that went for $1.30, according to optionMONSTER's Heat Seeker system. The volume was well above the strike's open interest of 337 contracts before the session began, clearly showing that this is new activity.
These long calls, which lock in the price where the stock can be purchased, are looking for CPRT to rally above $41.30 by mid-July. The options could expire worthless by that time if the shares remain below the $40 strike price. (See our Education section)
The trading follows bullish call buying in the June 40 calls on May 14 and a November 40/45 call spread on May 3.
CPRT is up 0.11 percent to $37.08 this morning. The company, which operates a virtual-bidding system for used cars, hit an all-time high of $38.26 last Friday after rising steadily since bouncing off support at the $32 level in mid-April.
Overall calls in the name outnumber puts by nearly 6 to 1 so far, a reflection of the day's bullish sentiment. Copart has not announced a date for its next earnings release, but last year's calendar suggests that the report will come out in late May.