The Comment Sending Etsy Inc (ETSY) to the Moon

Etsy Inc (ETSY) call volume is at 46 times what's expected at this point in the session

Jul 17, 2015 at 1:56 PM
facebook twitter linkedin

Etsy Inc (NASDAQ:ETSY) is taking off after a Google Inc (NASDAQ:GOOGL) executive unexpectedly mentioned the e-commerce site during a post-earnings conference call. "Developers like Etsy are already seeing a boost in traffic as a result of deep linking," GOOGL Chief Business Officer Omid Kordestani said. The news has ETSY's options pits in overdrive, with calls running at 46 times the usual intraday rate, and the equity's at-the-money implied volatility fresh off a record high of 110.3%.

Diving deeper, 27,000 calls are on the tape versus 11,000 puts. Seeing the most attention, by far, is the now in-the-money July 20 call -- where traders may be buying to open positions in the hopes of extended gains through today's close, when the front-month series expires. ETSY has already soared 24.1% to trade at $20.90, putting the stock above the trade's breakeven mark of $20.44 (strike plus the volume-weighted average price of $0.44).

One group that's likely not pleased with ETSY's banner performance is short sellers. Over 8% of the equity's float is sold short, and would take close to six sessions to buy back, at typical trading volumes. In fact, a portion of today's upside may be the result of shorts covering their bearish bets.

It should be noted that Etsy Inc (NASDAQ:ETSY) is hardly the only stock staring at massive gains this afternoon. In fact, a number of social media names are breaking out, and GOOGL itself is setting record highs thanks to an earnings beat.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1