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E*Trade bulls looking for more gains

David Russell (david.russell@optionmonster.com)

The bulls see more upside in E*Trade Financial.

optionMONSTER's Heat Seeker tracking program detected the purchase of about 4,000 April 11 calls for $0.25. A matching number of April 10 calls was sold at the same time for $0.52 but volume was below open interest in those.

The investor probably came into the session owning the April 10s, closed the position, and rolled to the higher strike. He or she collected a credit of $0.27 in the process and remains exposed to further upside in the share price. Adjusting the position let him or her recover almost half their capital at risk. (See our Education section)

ETFC rose 1.92 percent to $9.55 yesterday and is up 15 percent in the last month. Although the online brokerage's last earnings report on October was marred by loan-loss provisions, the company trades at barely half of book value. Its next earnings report is scheduled for after the bell on Jan. 24.

Total option volume was more than 6.5 times greater than average in the name, according to the Heat Seeker. Calls outnumbered puts by 13 to 1.

(Editor's note: E*trade competes with optionMONSTER's sister company tradeMONSTER .)

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