Jones Group is down hard today, but one trader is keeping the
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 1,200 February 14 calls for $1.03 and the sale of an
equal number of February 16 calls for $0.28. Volume was below open
interest at the higher strike, so there are two possible
explanations of the trade.
One is that the investor previously owned the 16s in hope of a
rally and rolled the
lower after shares dropped. That way they have more leverage to a
rebound because they're now
closer to the money
and have a
Alternately, both halves of the trade may have been opened, in
which case it was a
bullish call spread
with the potential to earn 167 percent from a move to $16. Either
way, they paid $0.75. (See our
JNY is down 8.82 percent to $13.86 in afternoon trading after
Women's Wear Daily reported that G-III Apparel Group has abandoned
an effort to buy the company's clothing division. That story drove
the stock back below its 200-day moving average for the first time
since early March.
Overall option volume is 6 times greater than average so far today,
according to the Heat Seeker. Calls account for a bullish 84
percent of the total.
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