Last fall, $BTH turned down an almost $17-per-share buyout offer. The stock has since dropped to support at prices it hasn't seen since last summer, just below $9 a share.
The recent short interest report for $BTH shows almost 5.5 million shares being borrowed to sell into the market. With daily volume coming in at just over 150,000 shares a day, it would take over 36 trading days for the shorts to cover their positions. That's an astonishing figure. Any hint of positive news will send shorts scrambling to cover and, with limited supply, the stock could see a squeeze higher.
$BTH is set to report earnings, according to earningswhispers.com, on Friday. The chart has just put in a double bottom. I like the risk/reward here for a move to the upside. I entered into the February $10 calls this morning to capitalize on such a move and may enter call contracts at months heading into the summer, including the March and June $12.50 calls.
Going long on the stock would also work here, as a move over $12 would equate to over 25% in profits from current levels.