This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Expedia Bulls Travel First-Class

By David Russell, reporter at OptionMonster

NEW YORK -- Expedia (EXPE) reported strong results Thursday afternoon, and one investor is positioned for some major profits.

OptionMonster's tracking systems detected the purchase of 10,000 January 35 calls for $2.55 and $2.60 about halfway through the session. Those contracts lock in the price investors must pay to buy the stock, so they can deliver major leverage if the shares move in the right direction.

So far, so good: The online travel company reported first-quarter profit of 22 cents on revenue of $816.5 million. Analysts had expected 15 cents and $790.91 million, respectively.

Expedia finished Thursday's session up 0.96% to $32.63 but was quoted at $38.74 in extended trading after the earnings report. If the gains hold this morning, those January calls will probably more than double to somewhere between $5 and $6.

The stock had rallied late last year and early this year but then pulled back and found support at its 100-day moving average. It's now poised to test its previous all-time highs from early 2008.

Overall option volume was 21 times greater than average in the session, with calls outnumbering puts by more than 12 to 1.

Russell has no positions in EXPE.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.66 -0.09%
FB $118.57 0.84%
GOOG $698.30 0.76%
TSLA $241.82 0.44%
YHOO $36.53 -0.19%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports