Bull looks for Ross to reach new highs

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Ross Stores started 2012 with a pullback, but the bulls expect new highs soon.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,000 January 50 calls for $0.65 and the sale of an equal number of January 52.50 calls for $0.15. Volume was more than triple open interest in both strikes.

Known as a bullish call spread , the trade cost $0.50 and will earn a maximum profit of 400 percent if the discount-retail stock closes at or above $52.50 on expiration. That's about 8.5 percent greater than its all-time high late last year. (See our Education section)

ROST closed yesterday at $47.62, up 0.7 percent on the session. It rallied more than 35 percent between mid-August and the end of 2011 as its low prices lured growing streams of customer traffic. It will also release December same-store sales this morning, and yesterday's bullish trader have been speculating on a strong report.

Overall option volume was 12 times greater than average, with calls outnumbering puts by almost 2 to 1, according to the Heat Seeker.



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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: ROST

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