Retail has been weak, but traders apparently believe that
there's something special about Chico's FAS.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of about 2,400 January 18 calls this morning, most of which priced
for $0.45. Volume was more than 12 times the previous open interest
in the strike, indicating that new money was put to work.
lock in the price where shares can be purchased in the company,
which targets women shoppers over the age of 30. The holders now
know that they won't miss a rally and are risking much less capital
than they would by owning shares directly. (See our
section for more on how to manage trades more effectively with
CHS is down 2.07 percent to $16.06 and has fallen 13 percent so far
this year. While the company's quarterly results have missed
expectations, investors and analysts have cited its long-term
growth potential. In particular they see it benefiting from the
Soma Intimates brand as lingerie giant Victoria's Secret pursues
The stock is also trying to hold the same $16 area where it peaked
in May 2012, which could make some chart watchers think that it's
due for a bounce. The next earnings report comes on Nov. 26, before
today's upside contracts expire.
Total option volume is 7 times greater than average so far in the
session, according to the Heat Seeker. Overall calls outnumber puts
by a bullish 20-to-1 ratio.
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