Aeropostale bulls not done shopping

By optionMONSTER,  July 30, 2012, 01:17:15 PM EDT

Aeropostale has been ripping, and the bulls are looking for more.

optionMONSTER's Heat Seeker monitoring system detected the purchase of about 9,500 September 21 calls for $1.20 and the sale of an equal number of August 20 calls for $1.15. Volume was below open interest in the 20s but not the 21s, which indicates that an existing bullish position was rolled from one contract to the other.

The trade cost about $0.05 and gives the investor an additional month to profit from upside in the mall-based fashion retailer. Without adjusting the position he or she would have lost value at an accelerating pace to time decay as expiration approaches three weeks from now.

ARO is up 0.23 percent to $20.40 this afternoon and more than 25 percent since late June. The stock peaked around $23 earlier in the year, and today's trader apparently expects a return near that level in the next two months.

Overall option volume is 11 times greater than average so far in the session, with calls outnumbering puts by more than 160 to 1.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Options

Referenced Stocks: ARO



Latest News Video



Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.43 0.07  0.52%
CSCO $ 24.24 0.35  1.48%
MSFT $ 34.87 0.79  2.32%
F $ 15.08 0.44  3.01%
ARUN $ 13.10 4.51  25.61%
SIRI $ 3.50 0.05  1.45%
GE $ 23.46 0.19  0.82%
S $ 7.32 0.04  0.55%