Large Call Option Earnings Play in Huron Consulting Group (HURN)

One trader seems to know  “think” that the earnings report from Huron Consulting Group (HURN) will be surprisingly good, based on their large unusual call buy this morning.

The trader bought 1,511 September $70 calls and paid $1.40 for those calls.  Huron Consulting Group (HURN) is only trading at $65.54 today.  It is up 92 cents on the day on average volume.

This is a very unusual option play given the small size of the company, and the very thinly traded nature of the shares.  And of course the glaring obvious:  the company announces Q2 earnings tonight at the close.  It does appear this was definitely a buy and not a sale as it was at the ask price.

The consulting company operates in three segments Health and Education Consulting, Legal Consulting and Financial Consulting.  It is very possible they had a blow out quarter given the nature of their health consulting with government.

Of course we never like to rule out the possibility of an analyst upgrade and price target increase when it comes to these unusual call buys.  Huron Consulting Group (HURN) is rated a buy currently, with a price target of $76.00.  Seems unlikely that a larger price target could be coming, but you just never know what to expect when a small company’s options are in play.

Huron_consulting_logo_HURNWe love these small company plays, but we hate same day of earnings call buys.  None the less, we are in a for a bit on this one.