The bulls have been making money in Avon Products this year, and
one big investor is looking for the uptrend to continue.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of about 20,000 July 17 calls for $1.38 and the sale of an equal
number of March 17 calls for $0.64. Volume was below open interest
in the March contracts, indicating that an existing position was
rolled forward in time.
The trader now has an additional three months to profit from upside
in the beaten-down cosmetics company. He or she paid an incremental
$0.74 to make the adjustment. (See our
AVP is up 1.44 percent to $16.97 in afternoon trading and has
gained 18 percent so far this year. It bled lower for years amid
leadership problems and missteps in emerging markets before finally
holding support at a 13-year low in December.
The Heat Seeker also detected upside activity in the name back on
in the January 16 calls, which generated
as the shares climbed in subsequent weeks. Then on
our scanners found more buying in the April 19 calls.
Total option volume is twice the daily average so far today, with
calls outnumbering puts by 70 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.
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