VFC Corporation has bounced sharply this month, and one investor apparently believes in more upside potential.
optionMONSTER's tracking program detected the sale of 1,250 March 65 calls for $2.10 and the purchase of 1,250 March 67.50 calls for $0.85 yesterday. Volume was below open interest in the lower contracts, indicating that a bullish position was rolled to a higher strike.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
VFC fell 0.7 percent to $66.28 yesterday but is up 9 percent in the last week. The apparel retailer reported bearish quarterly results on Feb. 19 and is expected to announce its next quarterly numbers on April 29.
Overall option volume in the name was about average in VFC yesterday.
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