Options Flow Summary: PRAA
Portfolio Recovery Associates Inc (PRAA)
Options on PRAA are trading 9 times its average daily volume today with the flow dominated by put sellers. Unusual high option volume has also been noted on 7/24 and 7/23 . This was in front of earnings which were released this morning.
While the distressed-debt management company has certainly had a nice run over the past ten months, from $38.75 to $65.66, some traders might have felt that the near term upside was limited. Earnings announced today were as expected. However, market participants needed better than expected news to support both this run and outlook for the next quarter. The stock is down $7.11 today, about 11.60%, so hats off to those that sold.
View Ellen Spiro's post archive >