Pandora Media is ripping today, and the bulls are looking for
optionMONSTER's Heat Seeker monitoring program detected the
purchase of about 10,000 September 14 calls for $0.88 and the sale
of an equal number of September 9 puts for $0.65. Volume was more
than 14 times open interest in both strikes.
The trade cost $0.23 and is similar to owning shares in the online
music company. They'll make money from the
if the stock continues to appreciate and face losses on the
if it drops.
The main difference between the position and owning equity is that
it will track movements in the share price less closely as time
passes. It will also expire worthless if P remains between $9 and
$14 through Sept. 21. (See our
P gapped higher on the open after reporting a narrow-than-expected
first-quarter loss and better-than-expected revenue. The stock is
currently up 17 percent to $12.11 in morning trading.
Overall option volume in P is 9 times greater than average so far
today, according to the Heat Seeker.
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