The bulls think iStar Financial is ready to pop.
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 4,300 February 6 calls for $0.30. Volume was more than 60
times open interest in the strike.
SFI rose 1.07 percent to $5.68 yesterday. The commercial-property
lender's last earnings report on Oct. 27 missed expectations,
though its provision for bad loans declined.
It's mostly been following the bearish trend in financials and has
lost almost half its value since last March. Recently, however, the
sentiment toward the sector has been turning more bullish, as some
investors have racked up
in such names as Bank of America and SunTrust Banks.
Some investors may think that SFI is undervalued because it trades
at about 0.29 times book value. Short interest is more than 20
percent of the float, which could also fuel a move to the upside if
it starts to rally.
Overall option volume in SFI was 5 times greater than average
yesterday, with not a single put crossing out systems.
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