Today’s tickers: MWW, TD & CP
MWW - Monster Worldwide, Inc. – Shares in the online employment solutions provider are off to the races today, rallying nearly 20.0% this morning to $7.78 after the Company’s CEO said it is looking at strategic alternatives to increase shareholder value. The positive comments spurred a rush into Monster Worldwide options, with front month calls seeing most of the action. Trading traffic is heaviest at the Mar. $8.0 strike where more than 9,600 calls have changed hands against open interest of just 838 contracts. Strategists speculating the bullish move in Monster’s shares is likely to continue in the near term, appear to have purchased the majority of the $8.0 strike calls for an average premium of $0.30 each. Call buyers may profit at expiration as long as MWW’s shares rally another 8.5% over the current traded price of $7.65 to exceed the average breakeven point at $8.30. Bullish positioning spread to the April expiry calls, as well, with around 1,000 contracts purchased at the $9.0 strike for a premium of $0.20 a-pop. Traders long these contracts stand ready to profit at expiration next month in the event that Monster Worldwide’s shares surge 20.3% to top the effective breakeven price of $9.20. Shares in MWW last traded above $9.20 back in November, having at that point erased nearly half of its value based on the April 2011 52-week high of $17.73. The stock closed Wednesday at $6.94, down 60.0% off the April high.
TD - Toronto-Dominion Bank – A large spread in Toronto-Dominion Bank put options may be read as a sign of caution on the financial services provider despite the release of better-than-expected first-quarter earnings ahead of the opening bell this morning. It looks like one investor purchased a put spread that…
