Gap drew bullish option activity yesterday for the second time in less than a week.
Traders bought more than 8,600 December 43 calls for $1.40 to $1.58 yesterday afternoon in volume above previous open interest of 257 contracts, according to optionMONSTER's Heat Seeker system. Our scanners also detected the sale of 7,419 September 40 puts in a single print for $0.50 earlier in the session against that strike's open interest of 1,767.
Last Wednesday the apparel retailer saw buying in the October 41 calls and selling in the October 40 puts. Long calls and short puts are both are both positive positions, as the value of the calls will appreciate while the puts decline if the stock rallies. (See our Education section)
GPS rose 0.69 percent yesterday to close at $40.72. The stock is down sharply since hitting $46.56 on Aug. 2, its highest price since April 2000, but appears to have found support around the $40.50 level in the last week.
Total option volume in the name topped 41,300 contracts yesterday, more than 16 times its daily average for the last month.
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