Traders look for rally in LendingClub

The bulls are targeting LendingClub.

optionMONSTER’s Heat Seeker market scanner shows that 5,300 March 7 calls were purchased for $ 1.05 to $ 1.07. Volume surpassed open interest of 1,177 contracts, an indication new money was put to work.

Calls fix the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. (See our Coaching section.) Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction.

LC rose 3.12 percent to $ 7.61 yesterday but is down 47 percent in the last three months. The next quarterly report is scheduled for pre-market hours on Feb. 11.

Overall option volume was 6 times greater than average. Calls outnumbered puts by a bullish 8-to-1 ratio.

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