Overstock com Inc (OSTK) $17.91 +5.99%

| April 5, 2010 | 2 Comments More

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.)

Category: All Stocks, Retail, Small Cap Stocks

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  1. rainman says:

    Believe it or not, one of my bigger positions Fred. I need to buy a put spread to protect some of my delta soon, but they are still selling puts, so still naked long calls. lol

  2. rainman says:

    Got really lucky on the new COO hire on this company (as well as earnings being reported when nobody really had no idea), it hit djnews.com first (disclaimer, speaking of djnews, I am also long NWSA calls [in full disclosure] ;) )

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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.

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