tsla

Option Traders React to Pandora Media Inc (P) CEO Shake-Up

Calls are flying off the shelves after Pandora Media Inc (NYSE:P) named a new CEO

Mar 28, 2016 at 10:46 AM
facebook X logo linkedin


On Thursday, Pandora Media Inc (NYSE:P) exploded for a 10.6% win, thanks to unsubstantiated sale rumors. But the stock has already given back much of those gains this morning, down 9.2% at $9.92, on news CEO Brian McAndrews is leaving the company and will be replaced by founder Tim Westergren. The stock is now short-sale restricted, and activity has picked up in the options pits. 

By the numbers, P calls are crossing at 15 times the intraday average, and are outpacing puts by a more than 26-to-1 margin. The most popular strike is the May 13 call, and Trade-Alert suggests one option player may be liquidating his position here. Meanwhile, it looks like another trader bought to open a block of 791 weekly 4/22 10-strike calls, gambling that the shares will muscle back into double-digit territory by the close on Friday, April 22, when the series expires.

It's not uncommon to see a preference for P calls. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, more than 17 long calls have been initiated for every long put during the past two weeks. The resulting call/put volume ratio of 17.38 is just 4 percentage points from an annual high.  Of course, some of this call-buying activity could be the work of short sellers hedging, considering 15.8% of the stock's float is sold short.

And even though Pandora Media Inc (NYSE:P) has trailed the broader S&P 500 Index (SPX) by more than 18 percentage points in the past three months, analysts are mostly bullish, too. Specifically, 11 call the stock a "buy" or better, with 14 deeming it a "hold" and none calling it a "sell." As such, P could continue to struggle on the charts, if some of this widespread optimism on Wall Street begins to unwind

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.