Call toll-free 800.328.1267
Options traders seem to think two obscure technology stocks are poised for rallies.
They first targeted Pinduoduo (PDD), amassing about 15,000 December 39 calls in the Chinese e-commerce firm. Most of the blocks crossed the tape for $0.60 to $0.80.
Bottomline Technologies (EPAY), a New Hampshire-based fintech, came later in the morning. Traders bought more than 7,000 of its January 55 calls, mostly for $0.70 and $0.75.
Calls fix the price where a stock can be purchased, so they tend to gain value when shares rally. Large purchases are sometimes viewed as signs investors see upside potential.
PDD rose 7.44 percent to $36.52. It was rebounding from its biggest crash ever last week, caused by weak quarterly results and disappointing forward guidance.
EPAY, on the other hand, has been climbing since it beat estimates on November 8. It was the company’s second straight better-than-expected quarter, following a huge rally in and pullback since early 2017. EPAY ended the session up 2.23 percent at $49.89.
The activity drove overall options volume in EPAY to record levels. It was also well above open interest in the respective contracts, a sign of positions being opened.
Options are an important tool for many retail investors. They can either replace trading shares, or make it easier to position oneself in stocks. Let’s consider the first things options traders need to know. An Option’s Price Is Usually Called ‘Premium’ ...
Options are complex instruments that can swing sharply in value. Traders may find the moves confusing, so this article will help explain key "Greeks" -- some of the most important factors impacting the price of options. Greeks are Greek letters used in complicated...
Covered calls are one of the most common strategies for options traders. While many investors have heard of them, they may not realize that covered calls are highly versatile. This article will cover how the method can be bullish, neutral and even bearish. First,...