Traders think the sky's the limit for Pandora Media, which has
already tripled this year.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 2,600 March 30 calls for $4 to $4.20. Volume was almost 10 times
open interest at the strike, indicating that new money was put to
work on the long side.
lock in the price where the online music company can be purchased,
letting investors cheaply control upside in the stock. They also
can generate significant leverage. For instance a move of 40
percent in the share price will inflate those calls by more than
200 percent. (See our
P is up 4.1 percent to $27.52 in afternoon trading, just off its
all-time high of $27.93 established yesterday. The company has been
cited on our
service frequently, resulting in several huge winners as bears were
forced to cover short bets and earnings surprised to the upside.
The last big move occurred on Sept. 12 after veteran Internet
executive and adman Brian McAndrews was hired as chairman and CEO.
The timing of the next quarterly release hasn't been disclosed yet,
but last year's calendar suggests it will occur in early December.
Overall option volume in the Pandora is still below its
full-session average, according to the Heat Seeker, but calls
account for 60 percent of the total.
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