IB Options Brief: Pandora Media, Inc. (P)

Options Unusual Activity

IB Options Brief: Pandora Media, Inc. (P)

Posted April 19th, 2012 by Caitlin Duffy in Unusual Activity

Pandora Call Options Pop As Shares Improve

P ñ Pandora Media, Inc.
Traders that appear to be speculating on a rebound in shares of the provider of Internet radio services turned-up the volume in Pandora Media call options today. Shares in Pandora, which have been beaten down in recent months, increased as much as 10.5% to $8.91 in the first half of the session before losing some steam to stand up 4.9% on the day at $8.45 as of 1:15 p.m. ET. The stock is down 15.0% year-to-date and more than 65.0% since touching a peak value of $26.00 at the June 2011 IPO.

June expiry call options saw the most action today, with the $9.0 strike call changing hands more than 6,700 times versus open interest of just 354 contracts. Most of the $9.0 calls appear to have been purchased for an average premium of $0.76 apiece. Call buyers profit at expiration as long as shares in Pandora jump 15.0% to surpass the average breakeven point at $9.76 by June expiration.

Traders positioning for shares to extend gains also snapped up around 1,000 in-the-money calls at the June $8.0 strike for a premium of $1.10 a-pop. Pandora Media, Inc. is slated to release first-quarter earnings after the market closes on May 24th.

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