Priceline Group Inc. (PCLN) Option Players Pay Up for Bullish Bets

Priceline Group Inc (PCLN) is higher -- and call options are active -- on sector M&A news

Feb 12, 2015 at 11:17 AM
facebook twitter linkedin


Priceline Group Inc (NASDAQ:PCLN) is enjoying a sector M&A rally, on news that Expedia Inc (NASDAQ:EXPE) is scooping up Orbitz Worldwide, Inc. (NYSE:OWW). As such, PCLN is flirting with a 2.6% gain at $1,087.81, and the stock's options are hot -- especially on the bullish side.

PCLN calls are trading at three times the typical mid-morning pace, and have outnumbered puts by a margin of almost 2-to-1. It looks like bulls are betting on the stock to climb back atop the $1,100 level by tomorrow's close, buying to open the weekly 2/13 1,100-strike call -- the most active option thus far. PCLN hasn't traded atop that round-number level since early January.

Ahead of Priceline Group Inc's (NASDAQ:PCLN) turn in the earnings confessional next Thursday morning, option traders are paying up for their short-term contracts. The equity's Schaeffer's Volatility Index (SVI) has risen to 41% -- higher than three-quarters of all other readings from the past year. Historically, the stock has enjoyed a post-earnings single-session gain in six of the past eight quarters, yet near-term traders are more put-biased than usual right now.

 

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! 

 


 


 
Special Offers from Schaeffer's Trading Partners