Staples has taken a beating, but the bulls think it's ready to
optionMONSTER's Heat Seeker monitoring system detected the purchase
of more than 4,700 May 13 calls, most of which priced for $0.20 and
$0.25. Volume was more than 13 times the previous open interest in
the strike, which indicates that new money was put to work.
lock in the price where investors can buy shares, letting them
benefit from a rally in the office retailer at low cost. He or she
also stands to earn significant leverage from the stock pushing
higher, but the contracts could expire worthless if shares remain
below $13 through mid-May. (See our
SPLS is down 1.4 percent to $11.99 in afternoon trading and is down
25 percent so far this year. Much of that drop followed a poor
earnings report one month ago.
The stock then managed to hold the same $11 level where it
consolidated in late 2012 and started rebounding last week. That
could make some chart watchers think that the stock will keep
The next earnings report comes on May 20, after today's contracts
Total option volume is still below average in the name, but calls
outnumber puts by a bullish 14-to-1 ratio.
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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