NutriSystem Inc. (NTRI) call options active as shares move higher

Page 1 of 2

NutriSystem Inc. (NASDAQ:NTRI) – Traders hoping to expand their wallets in the New Year are turning their attention to weight management services provider, NutriSystem Inc. (NASDAQ:NTRI), as shares in the name move up sharply, adding to recent gains. NTRI and its competitors are seen as beneficiaries of the perennial flood of “Resolutioners” that crowd into gyms, fitness centers and nutritionists offices touting various goals for the New Year. Shares in NutriSystem are currently up better than 7.5% on the day, and nearly 15% for the week, to stand at $8.97 as of 11:40 a.m. ET in New York trading on Friday. One or more options traders positioning for shares in NutriSystem to extend gains during the first few months of the New Year snapped up calls in the February and March expiries this morning. Roughly 1,100 call options changed hands at the Feb. $9.0 strike during the first half of the session, with most of the volume purchased for an average premium of $0.20 apiece. Traders long the calls stand ready to profit at expiration should shares in NutriSystem Inc. (NASDAQ:NTRI) rally another 2.6% over the current price of $8.97 to top the average breakeven point at $9.20. Bullish activity spread to the Mar. $10 strike, where around 450 calls appear to have been purchased for an average premium of $0.15 each. Call buyers may profit at March expiration in the event that NutriSystem Inc. (NASDAQ:NTRI) shares increase at least 13% over the current level to exceed $10.15 during the next 11 weeks. Shares in the provider of ready-to-eat meals last traded above $10.15 back in October of last year. Even after including this week’s gains in the price of the underlying, shares in NutriSystem Inc. (NASDAQ:NTRI) are still down more than 40% since this time last year.

NutriSystem Inc. (NASDAQ:NTRI)

Acme Packet, Inc. (NASDAQ:APKT) – Double-digit percentage gains in shares of Acme Packet on the back of an upgrade to ‘Buy’ from ‘Hold’ at Stifel Nicolaus with a 12-month target share price of $27.00 on Friday has landed some options traders with hefty overnight paper profits on bullish positions initiated yesterday. Shares in Acme Packet, Inc. (NASDAQ:APKT) are up 11.8% at $23.90 in early afternoon trading, and have increased 110% since the end of July 2012. Traders positioning for shares in Acme Packet to rally this week purchased around 1,000 calls at the Jan. 04 ’13 $22 strike yesterday for an average premium of $0.35 apiece. Premium required to buy deep in-the-money weekly calls at the $22 strike today increased six-fold overnight, with the bid/ask spread at $2.05/$2.15 as of 12:40 p.m. ET. Open interest in weekly options that expire after today is greatest at the Jan. 04 ‘13 $22.5 strike, totaling more than 2,900 open contracts. A review of time and sales data indicates most of the $22.5 strike weekly calls were purchased in a block of 2,290 contracts at a premium of $0.75 apiece. The value of the contracts to the buyer has more than doubled since purchase, with premium on the in-the-money calls currently at $1.80.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Jobs that May Exist in the Future

The Absolute Best States to Shop in the US

5 Best States for Golf Adventures

Top 15 Places To Visit Before You Die

10 Most Expensive Smartphones in the World

10 States with Lowest Physician Density

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!