Someone's looking for good news when Discover Financial Services
reports earnings next week.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 6,700 February 60 calls for $0.30. The volume was more
than 19 times the previous open interest at the strike, clearly
showing that new positions were initiated.
lock in the price where a stock can be purchased, letting investors
cheaply position for a rally. That way they won't miss a breakout
but also have limited capital at risk in the event of a selloff.
section for more on why it can make more sense to trade options
DFS fell 1.06 percent to $54.27 yesterday but is up 34 percent in
the last year. The credit-card issuer roughly doubled in value
between the start of 2012 and the middle of this year and has been
advancing more slowly since.
Earnings come out after the closing bell next Thursday, Jan. 23, so
yesterday's trader may be looking for a strong quarterly report.
It's also noteworthy that DFS has never traded above $57, so he or
she is looking for a breakout to new highs.
Total option volume in the name was 6 times greater than average in
the session, according to the Heat Seeker. Overall calls
outnumbered puts by more than 16 to 1.
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