Green Dot Corporation (NYSE:GDOT) is seeing 8 times usual options volume today, as one investor bought 945 August $22.5 calls at 45 cents a piece. GDOT has now seen 1404 of the Aug $22.5 calls trade today, and the Aug $20 is seeing some action now too.
The GDOT share price started taking off as the calls were bought, and is now trading at $19.47, up 41 cents on the day. It’s 52 week high is $26.87.
At this point, there hasn’t been any news to justify anyone to invest over $42,000 in call options on a thinly traded issue like Green Dot Corporation, which is a bank holding company that provides prepaid debit card products in the United States.
Green Dot Corporation announces earnings on July 31, 2014, so it is possible that positive sales numbers have leaked? Of course, it’s also very possible that an analyst upgrade is in the wind. It’s very common for investment banks to leak their upgrades providing the chosen few with a window of opportunity to make some serious cash buying the options before the new hits the wires.
We’ll have to wait and see if this is the case, again, with Green Dot Corporation.