Thursday, February 17, 2011 4:46:41 PM
ACAS 9.47 +0.06
David Russell (david.russell@optionmonster.com), On Thursday February 17, 2011, 1:14 am EST
American Capital gapped higher on a strong earnings report yesterday, and the bulls are looking for more gains.
optionMONSTER's Heat Seeker tracking system detected a surge of call activity in the investment company, which is still down about 80 percent from its 2007 peak. The August 10s were the busiest contracts, trading more than 5,600 times against open interest of 2,415. Most of the large blocks priced for $0.66 to $0.72.
There was also noteworthy buying in the March 10 calls and the May 10 calls.
ACAS rose 7.91 percent to $9.41 yesterday, its highest price since November 2008.
The company, which makes private-equity investments and leveraged loans, reported fourth-quarter profit of $0.19 a share to beat the $0.17 estimate. Management also said its assets should recover in value as the credit market and economy continue to improve.
The good news comes about seven months after ACAS said it was in danger of bankruptcy. Billionaire investor John Paulson, who famously shorted mortgages during the financial panic, owns more than 10 percent of the company.
Overall option volume was 10 times greater than average, with calls accounting for a bullish 87 percent of the activity, according to the Heat Seeker.
optionMONSTER helps you trade more profitably. Visit us to register for free daily market updates and education.
http://finance.yahoo.com/news/Bulls-charge-American-Capital-optmonster-200185829.html?x=0&.v=1
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM