Bullish traders piled into Kohl's near the end of yesterday's session.
optionMONSTER's monitoring program shows that more than 4,000 April 52.50 were purchased for $0.25 to $0.30 in the last hour of trading. Volume surpassed the strike's open interest of 2,018 contracts, an indication that new money was put to work.
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)
KSS rose 0.28 percent to $46.64 yesterday but is down 7 percent in the last month. The department-store operator reported bearish results on Feb. 4 and is scheduled to announce its next quarterly numbers before the market opens on May 12.
Overall option volume in the name was twice its daily average yesterday. Calls outnumbered puts by a bullish 8-to-1 ratio.
More From optionMONSTER