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Fifth & Pacific is back near long-term resistance, and one investor is looking for a breakout.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 15,000 October 14 calls for $0.65 and the sale of an equal number of October 13 puts for $0.45. Volume was more than 27 times open interest at both strikes.

The position cost $0.20 to open and is highly leveraged to upside in the apparel company. While similar to owning shares, the performance profile differs because it will track the stock less close as time passes and expire worthless if FNP remains between $13 and $14 through expiration six weeks from now.

FNP is up 0.85 percent to $13.75 in afternoon trading and is back near the $14 level that stood as a barrier in the spring. Based on today's option trade, they're looking for that resistance to yield and the stock to run.

The shares are already up more than 40 since late July, when the quarterly revenue beat expectations amid strong performance at its Kate Spade retail stores. Formerly known as Liz Claiborne, FNP has been shifting its focus toward the high-end brand to counter weakness at Juicy Couture.

Overall option volume in the name is more than 160 times greater than average so far today, with that bullish combination trade accounting for almost all the activity.

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