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[Komando Robot]

Bullish Option Activity Alert: DFS




Discover Financial Services (DFS) is seeing Bullish option activity today ahead of next week’s fourth quarter earnings release. The Dec. 20 Calls have seen 5,500 contracts trade, all either mid- market or on the offers, at a premium of $.15. With open interest of 1,533, today’s activity is opening buyers looking for Discover to rise at least 6.8% by next Friday’s option expiration. Interestingly, the company saw similar Bullish option trading on Wednesday of this week when sellers appeared in the April 15 and 16 Puts.

Discover’s shares have seen a one year return of 21.5% and set a new 52 week high of $19.23 earlier this week. Earnings will be released on Thursday the 16th before the market opens with analysts calling for EPS of $.41 with a range of $.32 - $.51. This week’s option activity suggests investors are looking for better than expected results for the company’s fourth quarter.