- Mulling Buffett's Stock Advice? Get in With REITs: Fund Managers
- So Now You Can’t Give Microsoft Away?
- Groupon Needs More Disclosure: Analyst
- China’s Steelmakers Set for Turnaround: Analyst
- Bulls Bet Silicon Motion Will Bounce
- Tobacco Stocks a Hot Dividend Play: Analyst
- Forget the Earnings, Disney’s Issue Is the Multiple: Analyst
- Drug Stocks Do Well in ‘Gloom and Doom’ Market: Analyst
- Unusual Volume: Taleo Jumps After Oracle's $1.9 Billion Offer
- Gas Prices in All 50 States Back Above $3 a Gallon
- Stocks on the Move Now: Caesars Entertainment Soars
- S&P 500 Earnings: Industrials Lead
- Stocks on the Move Now: O'Charley's Rallies
- Dow Rallies to Pre-Recession Levels: McDonald's Leads Since May 2008
- Unusual Volume Leaders: Gilead Sciences Spikes
- Stocks on the Move Now: Abercrombie & Fitch Tanks
- Groundhog Day Shadows the Stock Market
- Stocks on the Move Now: Amazon Dives
- Stocks Looking Past Europe for a New Driver of the Rally
- Citigroup Takes $50 Million Loss in Lending Rate Probe
- In Europe, Stagnation as a Way of Life
- Will Romney Regret Opposing Michigan Auto Bailout?
- Oil Demand to Grow With 'Two Speed' Outlook: IEA
- The Secret Lives of Traders—Seeking the Next Hot Thing
- FBI Investigated Steve Jobs Drug Use
- Strip Greenspan of His Knighthood: SocGen Strategist
- China Imports Slump, Raising Demand Concerns
MOST POPULAR
HOT ON FACEBOOK
Pawn and Payday Outfits: What Options Say
Text Size 
 |
Think the economic times are ripe for payday-loan companies? The options market is saying "think again," according to one analyst.
Fears are on the rise that state legislatures, alarmed by the short-term interest rates typically charged by these companies, may move to curtail the industry, Rebecca Darst of Interactive Brokers said on CNBC's "Squawk Box." Just this week Ohio made such a move.
"All the payday-loan companies, the companies that operate these sort of franchises in states around the country, they just got slammed yesterday, and I think the reason is that we're suddenly alarmed by the sort of wham-bam legislation," she said.
"Where we saw the upshot was in options activity in CashAmerica [CSH
Loading...
()
], which offers not just check-cashing and payday loans, but they also do a lot of online business ...As recently as a week ago, this company was out reporting very strong Q1 numbers, offering very bullish guidance for Q2, their shares are up 20 percent for the year to date, yesterday they tanked 10 percent, implied volatility up by more than 26 percent, at a three-month high. What this tells us is that we could see a little bit more downside." (See her full interview in here).
Other such companies, which often run pawn shops in addition to cash advance operations, include Advance America Cash [AEA
Loading...
()
], QC Holding [QCCO
Loading...
()
], and EZCorp [EZPW
Loading...
()
].
Data is a real-time snapshot *Data is delayed at least 15 minutes
