This Day On The Street
Continue to site
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

Traders Turn Bullish on U.S. Silica

By Mike Yamamoto, managing editor of OptionMonster

NEW YORK -- U.S. Silica (SLCA) does not typically see much option activity, but on Thursday option traders turned bullish on the name.

OptionMonster's tracking systems identified buying in the October 22.50 calls, where 2,561 contracts traded for $1.35 to $1.75. Open interest in the strike was just 504 calls before the session began, indicating that new positions were established.

The volume wasn't huge, but it did stand out in a name that averages just 938 options a day. Total SLCA calls outnumbered puts by 4 to 1 on Thursday, reflecting the bullish sentiment..

The calls purchased Thursday lock in the price where traders can buy the stock through mid-October no matter how far it might rise. But these contracts will track the share price closely because they are in the money, and they will quickly lose value if the stock doesn't move soon.

The company mines and sells commercial silica that has a broad range of uses, from oil and gas fracking to the production of paints and plastics. It gapped lower after missing second-quarter estimates on July 31 but reaffirmed its full-year guidance. Shares have been range-bound since then but rose 4.05% on Thursday to close at $22.89.

Yamamoto has no positions in SLCA.

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.88%
FB $80.54 0.07%
GOOG $540.11 -0.44%
TSLA $247.73 0.86%
YHOO $43.48 -0.44%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports