Options Trading News

January 31, 2013  Thu 4:14 AM CT

H&R Block drew bullish option activity yesterday for the second time in the last three sessions.

More than 20,000 January 2014 30 calls were bought yesterday, led by prints of 8,361 for $0.25 and 8,360 for $0.30, according to optionMONSTER's Heat Seeker tracking system. These are new positions, as there was no open interest in the strike at the beginning of the day.

HRB rose 0.65 percent to $23.07 yesterday after hitting $23.18 earlier in the session, its highest intraday price since January 2010. This $23 level has been resistance going back even further, to October 2008. The stock had been trending steadily higher since trading at their 52-week lows around $14.50 last May, but shares have really taken off since starting 2013 just above $18.

Yesterday's long calls, which lock in the price where traders can buy shares, are looking for the tax-preparation company to close above $30 by expiration in a year. The stock's all-time high is $30.50, touched briefly in February 2004.

Total option volume in HRB exceeded 38,000 contracts yesterday, 8 times its daily avearge of 4,764 in the last month. Calls outpaced puts by 5 to 1, a reflection of the session's bullish sentiment.

The name also saw bullish buying of the April 25 calls on Monday. Premiums on those contracts have doubled since then.
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