The bulls want to go places with Expedia, which has been holding
its ground after a pullback last month.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of some 7,300 October 60 calls in the online travel
company for roughly $4.30. Similar amounts were sold in the October
50 puts for $2.40 and the October 70 calls for $1.40. Volume was
more than twice open interest in all three strikes, indicating that
new positions were initiated.
Selling upside calls and downside puts generated additional income,
lowering the trade's cost to just $0.50 per contract. The position
highly leveraged to gains
in the share price, earning a maximum profit of 1,900 percent on a
move to $70, but stands to lose money if the stock declines. (See
section for more about the opportunities and risks associate with
EXPE fell 0.57 percent to $57.68 yesterday. It staged a huge rally
between February 2011 and February 2013--more than tripling from
below $20 to over $65--but has been drifting lower since. The
shares gapped lower on April 26 after management warned of lower
profit at its Hotwire business but have been trying to fight their
way back this month.
Yesterday's investor may be willing to
at the $50 level because that was a peak in June 2012, suggesting
that it may now provide support. Total option volume was 8 times
greater than average in the session, according to the Heat Seeker.
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