How one trader is staying with Gap
An investor is looking for Gap to continue rebounding in the next month.
optionMONSTER tracking systems detected the sale of 2,500 November 39 calls for $3.03 and the purchase of 2,500 December 40 calls for $2.73 on Friday. Volume was below previous open interest in the nearer-dated contracts, which expired at the end of last week, but above it in the December strike.
This indicates that an investor is rolling a position to a higher strike a month later, taking profits off the table in the process. The new long calls , which are looking for more gains in the next five weeks, will track the share price closely because they are still in the money . (See our Education section)
GPS rose 0.24 percent on Friday to close at $42.15. The apparel retailer had been on a blistering run from early 2012 but pulled back after hitting a 13-year high of $46.56 in August. It gapped down on weak same-store sales in October but gapped back up on Nov. 8 after a strong quarterly report.
Total option volume in the name topped 12,400 contracts on Friday, nearly twice its daily average for the last month. Overall calls outnumbered puts by more than 7 to 1.
More From optionMONSTER