This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Bulls Like Fortress Ahead of Key Earnings

By David Russell, reporter at OptionMonster

NEW YORK -- The bulls are piling into Fortress Investment (FIG) as two big events loom on its calendar.

OptionMonster's tracking systems detected the purchase of more than 2,000 March 6 calls, most of which priced for $2.25. Volume was more than 100 times open interest at the strike, indicating that new positions were initiated.

Calls lock in the price where shares can be purchased in the investment company. Investors use the contracts to position for upside cheaply, to limit capital at risk, and to generate leverage.

Fortress rose 0.25% to $7.99% Tuesday and has more than doubled in the last year. It's been tracking the performance of Nationstar Mortgage (NSM), its largest investment, which also saw bullish call buying Tuesday. Both companies will report earnings in the next week: Fortress on Thursday, and Nationstar next Tuesday.

Total option volume was eight times greater than average in the name Tuesday, with calls outnumbering puts by a bullish 5-to-1 ratio.

Russell has no positions in FIG.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
YHOO $44.13 -0.69%
AAPL $124.25 -0.14%
FB $81.66 -0.67%
GOOG $542.56 -0.99%
TSLA $187.59 -0.63%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports