Options Trading News

September 22, 2016  Thu 12:09 PM CT


TripAdvisor is drawing short-term bullish option activity today.

optionMONSTER's monitoring program shows that more than 2,100 Weekly 61 calls expiring at the end of tomorrow's session were purchased for $0.60 to $0.65. This represents fresh buying, as open interest in the strike was a mere 15 contracts before the trades occurred.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

TRIP is up 1.24 percent to $61.29 in afternoon trading but is down 6 percent in the last three months.  The vacation-review site reported bearish results on Aug. 3 and is expected to announce its next quarterly numbers after the close on Nov. 3.

Overall option volume is about average in TRIP so far today, but calls outnumbered puts by a bullish 9-to-1 ratio.

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