In what has been the busiest day for us in several months, along comes one more large and very unusual call buy. While there have been several this afternoon, this one in Civeo Corp (CVEO) really piqued our interest.
A trader has just bought 2,000 + Civeo Corp (CVEO) October $25 calls. The trader paid $1.65 for the contracts at the ask. That makes for a good sized bet with a transaction value of over $330,000 for a little known company that provided employee accommodations for Canadian oilsands workers as well as Australian resource workers.
Civeo Corp (CVEO) is currently trading at $25.55 after hitting a low of $25.10 earlier this morning. It spiked just after the call buy to $25.65. CVEO has a 52 week high of $28.40, and a low of $21.00 on the year. Volume in trading is lighter than average, trading 740,000 shares so far today, but volume is picking up since the call buy. Clearly this trader is confident in Civeo Corp (CVEO) business prospects in the short term. Maybe they “smell” an upgrade $1.70. The options are now $1.65 to $1.80, last traded at $1.70.
As we said, this is not a widely followed company, with just 3 analysts currently follow Civeo Corp (CVEO). However, the average rating on CVEO is “outperform” and the average price target is $27.67.
The last analyst action was in July , when Susquehanna boosted it’s price target on Civeo Corp to $31.00.
So again, this one is very interesting given the size of the bet, and if you can get it at $1.70 or less it could get interesting for you too.