For Expedia, It's All About the Calls, Stupid (EXPE)

Shares of Expedia Inc. EXPE are lower on the session by 1.38%, currently trading at $25.06. The stock has been moving largely higher over the past nine weeks, though is now hovering at resistance around $25.00. The stocks 52-week high is at $27.51. Options traders are buying calls on the name today, betting that the stock can make a run on that high. The October $27.50 and $29.00 call strikes were each purchased roughly 1,400 times, on the offer. Volume exceeded open interest on both strikes, which indicates new positioning on the name. This is known as a ‘call stupid’ trade, where both upside strikes are purchased, as opposed to a ‘call spread’ trade, where the lower strike is purchased and the upper strike sold. Call volume is now running at 5.72x the daily average. Expedia, Inc. is an online travel company. The company makes available on a stand-alone and package basis, travel products and services provided by numerous airlines, lodging properties, car rental companies, destination service providers, cruise lines and other travel product and service companies. For more great research like this, as well as how to play it through options…please visit Benzinga’s Options & Volatility Edge and Benzinga’s Cash Generator.