By David Russell
Call volume surged in HSN Inc. (HSNI) for the second time this month as the bulls continue seeing upside in the parent of Home Shopping Network.
optionMONSTER's Heat Seeker tracking program detected money flooding into the June 30 strike, which traded 5,106 times against open interest of only 6 contracts. A single purchase of 4,375 calls for $0.70 accounted for most of the activity.
HSNI rose 7.23 percent to $21.94 yesterday but must rally another 40 percent by expiration for the options to turn a profit. The stock has been breaking out to new highs, driven by strong earnings and bullish technical patterns.
The company is scheduled to release its next quarterly results before the market opens on March 3.
Option activity has been bullish in the name over the last 20 sessions, with average call volume exceeding puts by 13 to 1, according to the Heat Seeker. On Feb. 1, traders snapped up 10,000 March 20 calls for $1.40. Those contracts remain open and closed yesterday's session bid at $2.15.
Some 5,749 contracts traded in HSNI yesterday, nearly seven times more than average number.
(Chart courtesy of tradeMONSTER)