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

Bulls Target CIT Ahead of Earnings

By David Russell of OptionMonster
 
 
(CIT) CIT releases earnings next week, and the bulls piled in Tuesday.
 
OptionMonster's tracking systems detected heavy buying in the February 52.50 calls. The largest block of 4,500 contracts went for 42 cents, accounting for more than half the 8,250 that were purchased. Volume was 98 times previous open interest, so new money was clearly put to work.
 
These calls lock in the price where shares can be purchased in the small-business lender. They provide cheap exposure to gains and can let investors generate significant leverage in a rally, but the contracts will expire worthless if shares remain below $52.50 through mid-February.
 
CIT shares declined 0.52% to $49.64 Tuesday, pulling back to their 100-day moving average for the first time in more than a month. Quarterly results come out on Jan. 28, and Tuesday's traders now stand to profit from the stock gapping higher on a strong report.
 
Total option volume was 13 times greater than average in the session, with calls outnumbering puts by a bullish 16-to-1 ratio.
 
Russell has no positions in CIT.

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
Submit an article to us!
SYM TRADE IT LAST %CHG
YHOO $41.76 -1.80%
AAPL $128.31 -0.50%
FB $78.73 -0.33%
GOOG $539.00 0.20%
TSLA $238.73 5.60%

Markets

DOW 18,059.18 -11.22 -0.06%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports