Hhgregg has dropped to long-term support levels, and the bulls
are stepping in before the company's earnings report this week.
optionMONSTER's tracking programs detected the purchase of about
4,000 June 9 calls for $0.95 to $1.10 on Friday, with the single
largest block pricing for $1. There was no open interest in the
strike before the trade appeared, so this is a new position.
lock in the price investors must pay for the stock. They can
generate significant leverage if their underlying stock rallies but
will expire worthless if it fails to move. (See our
HGG fell almost 4 percent late on Friday morning but then snapped
back and finished the session unchanged at $9.59. The electronics
chain has been struggling against tight competition and is trying
to hold support around the same level where it bounced last year.
The company's earnings results come out before the bell on
Overall option volume was 35 times greater than average in the
session, with calls outnumbering puts by 12 to 1.
(A version of this post appeared on
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.