Here’s another unusual option buy to take to the bank, this time in the calls of Blackhawk Network Holdings (HAWK). While it’s been trending higher since early June, one investor thinks it is going much higher. They bought more than 800 of the August $30 calls at 50 cents this afternoon.
While not a huge bet ($40,000), it is unusual for such a thinly traded company like Blackhawk Networks and is 15 times the usual options volume on HAWK. The stock is trading up again today at $27.18, up 80 cents, or 3%.
So why the fuss on HAWK? We’re not really sure as there has been no news since the call buy. The company reports earnings July 14, so maybe some positive data has leaked from that report?
As is usually the case, it could also be a buyer taking advantage of a leaked analyst upgrade yet to be released to the public. It’s sad how often this kind of abuse occurs, but at the same time, you can take advantage of these unusual options trades and copy cat the trade, or buy the common.
Blackhawk Network Holdings does currently have an average rating of OVERWEIGHT, but a price target of only $25.35, so there is a good potential for a price target increase for HAWK in the near future as it is trading higher than that average target.
Here’s the 5 day on Blackhawk Network Holdings (NASDAQ:HAWK)