Bulls come back to Coupons.com
Coupons.com attracted bullish option activity yesterday for the second time in as many weeks, just before its next earnings report.
More than 2,000 March 15 calls were purchased for $1.45 to $1.55 yesterday, according to optionMONSTER's Heat Seeker tracking program. This is fresh buying, as open interest in the strike was just 122 contracts before the session began. The trades follow February 15 call buying on Monday of last week.
These long calls lock in the price where the stock can be purchased and allow traders to profit from gains for much less capital than needed to buy shares directly. The options can provide significant leverage in a rally but will quickly lose value if the stock remains below $15. (See our Education section)
COUP rose 0.76 percent to $14.49 yesterday. The stock climbed to $20 on Jan. 9 but then fell sharply and is now trying to hold support near its 100-day moving average. The digital-coupon company is scheduled to announce fourth-quarter results on Monday.
Overall option volume in the name topped 2,700 yesterday, more than 6.5 times its daily average for the last month. Only 51 of those contracts were puts, a reflection of the session's bullish sentiment.
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