Pandora’s rally continues. Shares are up 94 cents to $10.76 in active trading of 3.7 million shares and now up 24.6 percent in just six trading days. Options on the Internet radio operator are busy for a second day. Like yesterday (see 5/14 color), call buyers seem to be dominating the flow. 22,000 calls and 2,360 puts traded on the stock so far. Jun 9, 10, 11 and 12 calls are busy. May 9 and 11 calls are seeing action as well. 30-day ATM implied vols are up 2 percent to 88 ahead of a May 23 earnings report. Short interest is probably behind some of the call buying in Pandora. As of April 30, short interest as percent of float was almost 30 percent. Prior to the six-day advance, the stock had suffered a two-month 40 percent slide.
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.