Overstock.com (OSTK) rallied more than 30 percent on earnings Thursday and is up another 7 percent to $18.08 today. In the options market, bullish trading is being seen as well, with 3321 calls traded, or 3x the recent avg daily. The action is focused on April 15, 17.5 and 20 calls. June 20 calls are seeing interest as well and implied volatility is up about 7 percent to 55. OSTK reported its first ever annual profit last Wednesday and, in the conference call, CEO Pat Byrne lashed out on short sellers, “crooked” hedge funds and regulators. “We’ve got a group of parasites who have found a loophole that they can keep on using to just drain resources out of entrepreneurs in America, and in the process kill small companies,” accordting to Byrne. He’s filed lawsuits (link to story.)
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.