In yet another coincidence in the options market, an unusual call buy in URS Corp (URS) yesterday, is paying off nicely today. A trader with an amazing crystal ball, bought 1027 July $50 URS calls before noon yesterday for up to 40 cents. Today, URS is up $2.26 so far today to $50.20, on just slight higher volume than usual.
So why is URS up? Well, there is no news yet, though clearly yesterdays call buyer knows that some news is coming. And it must be very good news, given the run URS is on. It appears to be very slow methodical accumulation in the shares of URS Corp today.
There is no news, and the company doesn’t announce earnings until August, so it’s clear this option buy is based on material facts leaking on either a new project contract, or a big analyst upgrade yet to be announced to the public.
URS Corp (URS) provides services for federal, oil and gas, infrastructure, power, and industrial projects and programs. So it’s plausible that a big fat contract has leaked before the official announcement.
The 16 analysts who cover URS Corp have a HOLD rating on the stock with a price target of $47.00. Given it’s recent run past that target, it is also very plausible the call buyer was an analyst buying up the options before the official upgrade news release.
Either way, that trader is up about double as the options are now trading at 80 cents.