Credit: Shutterstock photo(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)
Strong earnings have lifted Monster Worldwide, and now the bulls are back.
optionMONSTER's Heat Seeker system detected the purchase of 3,900 March 8 calls for $0.70. Volume was more than 20 times open interest at the strike, which indicates new money was put to work.
Long calls appreciate in value when a stock rallies because they fix the price where investors can get long. Their cheap cost helps manage risk and creates the opportunity for significant leverage. (See our Education section)
MWW rose 1.15 percent to $7.06 yesterday and has pulled back from a 52-week high over $8 last month. The provider of employment-related services is trying to hold support over its 50-day moving average after profit surpassed estimates in May and July. Short interest stands at about 30 percent of the float, which could also potentially fuel buying.
Total option volume was 17 times greater than average in the session, with calls outnumbering puts by a bullish 200-to-1 ratio.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
