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

Och-Ziff Draws Bullish Trades

By David Russell, reporter at OptionMonster

NEW YORK -- Och-Ziff Capital (OZM) is not a name that often sees unusual option activity, but Thursday its trading lit up OptionMonster's screens.

OptionMonster's tracking systems showed early buying in the September 7.50 calls, with about 5,000 purchased in the first 15 minutes of the session for 40 cents. Volume was more than six times the open interest in the strike at the beginning of the day, indicating that these were new positions.

Those calls lock in the price investors must pay to buy shares in the hedge-fund operator. They can generate some nice leverage in the event of a rally but will expire worthless if the stock doesn't move before they expire.

That leverage was already at play Thursday because Och-Ziff was up about 3% when the options hit. The stock continued marching higher throughout the session and ended up 12% at $7.94. Those calls, meanwhile, inflated 50% to 60 cents.

Shares have been falling for a long time and were building support near their lowest level in more than three years. But then the stock rallied after earnings and revenue beat analyst estimates.

Overall option volume was 47 times greater than average in the session, with calls outnumbering puts by 8 to 1.

Russell has no positions in OZM.
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 $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports