How investor is playing Robert Half
Mike Yamamoto | [email protected]
optionMONSTER's Heat Seeker system yesterday detected the sale of 3,890 November 40 calls for $0.40, below the bid price at the time, and the purchase of 3,890 December calls for the ask price of $1. Volume was below previous open interest in the nearer-term strike but above it in the longer-dated contracts, indicating that a position was rolled forward.
The investor is selling the November contracts and paying a net $0.60 to stay in the trade for another month. The new long calls, which lock in the price where the stock can be bought, are looking for shares to rally by mid-December but will expire worthless if shares remain below $40. (See our Education section)
RHI was up fractionally to $39.27 yesterday. The staffing and consulting company gapped lower from the $40 level after reporting third-quarter results on Oct. 22, and shares have drifted sideways since.
Yesterday's call roll made up almost all of the option volume in RHI, which 12 times its daily average for the last month. No puts changed hands in the name.