Pandora (P) is up 48 cents to $8.54 in active trading of 1.8 million shares and implied volatility in the options on the stock is up sharply amid increasing call activity today. Total volume is about 12,000 calls and 4,000 puts, which is 5X the daily average for the name. The action has been in smaller sizes and includes a multi-exchange sweep of 1,519 Jun 9 calls for 65 cents per contract. 6,590 traded and it appears that the flow is being driven by a combination of customer and firm buyers, according to ISEE data. Apr 9, Jun 8 and Jun 10 calls are also seeing interest and 30-day ATM imiplied vols are up 26 percent to 77, as it appears that speculative call buyers are dominating the action in Pandora today. Some investors are possibly anticipating a rebound after the stock’s dismal performance lately. P is down 43.5 percent since earnings were reported on March 6 and were falling to new post-IPO lows yesterday.
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.