H&R Block is attempting to hold a key level, and investors
are cautiously optimistic.
optionMONSTER's tracking systems detected the purchase of 2,490
September 13 puts for $0.45 against open interest of just 21
contracts. The stock held its ground despite the broader market's
decline, which suggests that today's put buying was the work of a
shareholder seeking protection rather than outright bearishness.
(See our Education section)
HRB is down 1.47 percent to $14.11 in morning trading. The stock
has fallen 19 percent in the last four months but is trying to hold
the same $14 level where it peaked last October. That could make
some traders expect support around this area on the chart.
The tax-preparation company has been losing market share for years
but started to fight its way back in late 2010. More recently,
attention has focused on whether it will be forced to cover losses
on mortgages originated during the subprime bubble.
HRB said it didn't expect to be held liable following its last set
of numbers on June 23. Earnings missed consensus by a small margin
while revenue was slightly better than expected.
Overall option volume in the stock is 4 times greater than average
so far today, with puts outnumbering calls by 6 to 1.
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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