Pre-Earnings Call Sellers Swoop In on VeriFone Systems Inc (PAY)

VeriFone Systems Inc's January 2015 36-strike call is being sold to open today

Dec 15, 2014 at 2:06 PM
facebook X logo linkedin


It's a busy day in VeriFone Systems Inc's (NYSE:PAY) options pits, as last-minute traders line up their bets ahead of the company's after-the-close quarterly earnings report. Specifically, 26,000 contracts have changed hands, 17 times what's typically seen at this point in the day.

Drilling down, the bulk of the action is centered at PAY's January 2015 36-strike call, where speculators appear to be selling to open the contracts for a volume-weighted average price of $0.75. This is the most the traders stand to gain, should PAY remain south of the strike through January options expiration. However, there could be an ulterior motive for today's call selling, with traders hoping to capitalize on a volatility crush in the wake of tonight's scheduled announcement.

On the charts, VeriFone Systems Inc (NYSE:PAY) has put in a strong showing over the past year, tacking on more than 32% to trade at $33.02. Assisting the stock in its trek higher has been its 50-week moving average, and this trendline was key in containing PAY's last two pullbacks. The security could be poised to bounce from here after the firm unveils its fiscal fourth-quarter results tonight, considering PAY has averaged a single-session post-earnings gain of 3.5% following its last four turns under the earnings spotlight.

Daily Chart of PAY Since December 2013 With 50-Day Moving Average
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI