One trader is turning bullish on Expedia as it tries to recover from a disappointing quarterly report last month.
optionMONSTER's Heat Seeker system detected the purchase of 3,000 July 59.48 calls in a single print for $2.05 on Friday. The volume was well above the strike's open interest of 762 contracts before the session began, clearly showing that this is a new position.
The online travel site rose 5.18 percent to $58.87 on Friday, buoyed by better-than-expected earnings report from rival Priceline.com. EXPE had climbed above $65 leading up to its own first-quarter results on April 25 but then tumbled to $56 in the next two days after lowering guidance.
Friday's long calls are looking for EXPE to rally above $61.53, a gain of roughly 3 percent or more, by mid-July. These contracts lock in the price where the stock can be purchased no matter how high it might go, but they will expire worthless if shares remain below the $59.48 strike price. (See our Education section)
Overall option volume in the name was nearly 8,800 contracts on Friday, compared to a daily average of 5,020 in the last month. Calls outnumbered puts by more than 3 to 1, a reflection of the day's bullish sentiment.
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