TASER International, Inc. (TASR) High Fails to Shake Skeptic

TASER International, Inc. (TASR) raced to a 10-year high earlier

May 1, 2015 at 1:48 PM
facebook twitter linkedin


In the wake of a price-target hike to $35 at Craig-Hallum, TASER International, Inc. (NASDAQ:TASR) is breaking out -- up 8.2% at $32.65, and fresh off a 10-year high of $33.23. Options traders are responding, with intraday volume surging to six times the typical amount.

Seeing the most attention are the January 2016 40- and 44-strike calls, where matching 1,300-contract blocks traded simultaneously during the lunch hour. According to data from the International Securities Exchange (ISE), the lower-strike calls were bought to close, while the higher were sold to open. In other words, this call writer is rolling his short position up -- likely setting a higher ceiling in light of today's rally.

Call selling has been a popular strategy on TASR in recent weeks. During the past 10 days at the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), more than 5,000 calls have been sold to open, versus roughly 4,300 bought to open.

This skepticism is surprising, considering TASER International, Inc. (NASDAQ:TASR) has been surging, as police departments come under increasing scrutiny amid the Freddie Gray case in Baltimore. Over the past month, the stock has outperformed the S&P 500 Index (SPX) by 22.4 percentage points, and has also more than doubled in value year-over-year.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners