The bulls are looking for a payday when Cash America reports earnings next week.
optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,000 September 50 calls for $1.90 to $2.10. Volume was 77 times open interest at the strike, indicating that new money was put to work on the long side.
Long calls lock in the price where shares can be bought in the pawn-shop operator. These options could generate significant leverage if the stock rallies while limiting the amount of capital at risk if it drops. (See our Education section)
CSH rose 0.58 percent to $45.11 yesterday. It surged 50 percent between mid-November and early March but has been pulling back since. Shares are now sitting at the same level where they peaked last July, which could be leading some traders to think that they're at support and ready to bounce.
The next scheduled event that could provide the catalyst is the release of first-quarter results before the bell next Thursday, April 25. The last report beat expectations on the top and bottom lines.
Total option volume was 37 times greater than average in the session, according to the Heat Seeker, with calls outnumbering puts by more than 1,000 to 1.
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