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

by Andrea Kramer

Published on Feb 12, 2015 at 11:17 AM
Updated on Apr 20, 2015 at 5:32 PM

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.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
Extra Space Storage Stock Wavers After Downgrade
Raymond James downgraded to "underperform" from "market perform"
DKS to Continue Providing Benefits to Furloughed Workforce
DKS has seen an increase in put open interest over the past year
The Top Lithium Play of 2020
Click to continue to advertiser's site.