Will Ticketfly Buy Spark Pandora Media Inc's (P) Next Move Higher?

Pandora Media Inc (P) reached a $450 million deal to buy Ticketfly

Oct 7, 2015 at 9:13 AM
facebook twitter linkedin


Pandora Media Inc (NYSE:P) has agreed to purchase small-venue ticketing agency Ticketfly for $450 million in cash and stock. While shares of the Internet radio firm are failing to benefit from the M&A buzz pre-market, option traders have been banking on upside for some time.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), P has racked up a call/put volume ratio of 5.33 over the past 10 weeks -- with more than five calls bought to open for each put. More significantly, this ratio outranks all but 2% of comparable readings from the past year, indicating a much stronger-than-usual appetite for bullish bets over bearish.

Optimism toward P isn't constrained to its options pits, either. Two-thirds of covering analysts have doled out "buy" or better assessments.

There's a reason for that. Pandora Media Inc (NYSE:P) has soared over 23% year-to-date to trade at $21.98 -- a 2015 closing high -- and since early September has been ushered higher by its 10- and 20-day moving averages. On a relative-strength basis, the shares have outperformed the broader S&P 500 Index (SPX) by 50.8 percentage points over the previous 60 sessions.
 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners