Rising home prices and conservative borrowing have today's homeowners sitting on a record amount of potential cash. Today's mortgage holders saw their home equity increase by...Real Estateread more
SoftBank wants to push Neumann out of the CEO role ahead of the IPO.Technologyread more
The Mac Pro is the only major Apple computer to be assembled in the United States. Most of Apple's products, including the iPhone, are assembled in China and are facing tariff...Technologyread more
CNBC's Jim Cramer calls on investors to be wary of the slew of hyped-up unicorn companies going public this year and encourages the focus to be on deliverable earnings.Investingread more
Toys R Us' bankruptcy caused a 7% surge in sales for the toy industry during the first half of 2018 as parents stocked up, then sales fell 2% as manufacturers experienced...Retailread more
The UK's Civil Aviation Authority said Thomas Cook had now ceased trading and the regulator would work with the government to bring the more than 150,000 British customers...Europe Marketsread more
The RNC paid $166,390 in August to the office of Mintz Levin for "legal and compliance services," according to a disclosure filing.Politicsread more
Trump has called Chairman Jerome Powell "clueless" and Fed officials "boneheads."The Fedread more
Trump's call with the foreign leader is reportedly the subject of a whistleblower's complaint that has spurred new accusations of wrongdoing from Democrats.Politicsread more
The solider, Jarrett William Smith, 24, of Fort Riley, Kansas, was charged with one count of distributing information related to explosives and weapons of mass destruction,...Politicsread more
Harvard economist N. Gregory Mankiw says ultra-wealthy couples could split their fortunes in half through divorce and avoid paying a wealth tax proposed by presidential...Wealthread more
Pandora has soared more than 100% so far this year, and investors are betting that run continues. On Thursday traders bought more than 12,000 calls with a September 10.50 strike price, according to Investitute.com co-founder Pete Najarian.
It's been a rocky ride for the music-streaming service as competition in the space heats up. Spotify, Amazon, and Apple are just some of the big names that have their own platforms. Pandora fell more than sixty percent last year as traders debated the cost of competition and if the service could grow its subscriber base.
But 2018 has largely been a different story. The company most recently reported a smaller-than-expected EPS loss for Q2, and revenue that beat expectations. Additionally, Pandora announced it now has around six million Premium subscribers. The stock has gained nearly nine percent since that report on July 31 after-the-bell.
These particular calls that Najarian is watching expire on September 28, so it's a relatively short-term bet. Pandora closed at $9.97 on Thursday, which means traders are betting it pops at least 5.3% by the end of the month.
Traders can use call options to capitalize on a stock's move higher while simultaneously limiting their downside risk.
If Pandora doesn't hit $10.50 by September 28 the traders will only lose the price they paid for the call option - typically a fraction of what it would cost to buy the stock - plus the commission fee. On the flip side, should Pandora blow through $10.50, the call-option gives the trader the right to buy the stock at $10.50 instead of the higher level.
Pete Najarian owns Pandora calls.