Standard Pacific has been consolidating all year, and now the
bulls think it's ready to start moving again.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 2,100 January 8 calls, most of which priced for $1.50.
Volume was almost 26 times open interest at the strike, indicating
that new money was put to work on the long side.
lock it the price where shares can be purchased in the California
homebuilder. They also have the potential to generate significant
leverage if the stock goes higher.
SPF is down 1.3 percent to $8.35 in morning trading. It more than
doubled over the course of 2012 as the housing market improved but
has been moving sideways since then. The shares bounced at their
200-day moving average earlier this week, which could make some
chart watchers think that they're still in a bullish uptrend.
The noteworthy thing about today's activity is that the trader is
strike, which provides him or her with tighter correlation to the
underlying share price. (See our
section for more on how to pick the right strike and expiration to
match your expectations.)
Total option volume is slightly above average in the name so far
today, with calls outnumbering puts by more than 200 to 1.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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