This is our favorite type of UOA to see. A big OTM hit, immediately followed by massive news.
Source: Investor’s Business Daily
ESPN (and the Smart Money) Bet on PENN
Today, with PENN Entertainment shares trading at $24.34, someone picked up 2,200 OTM call spreads expiring Friday between the $25 and $27 strikes, for about $0.61 each. Tomorrow, if the stock remains where it is, they will have more than tripled their money. That’s because shares of PENN soared more than 18% after hours to as high as $31.76 after a big announcement: ESPN will be partnering with Penn. Penn will rebrand its Barstool Sportsbook to a new “ESPN Bet”, which will launch in 16 states this fall.
Penn is set to report earnings tomorrow morning, but with an announcement like this after hours, that earnings call will likely bear closer resemblance to a post-game after party than a stuffy conference call.
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Billed Annually at $995