Bulls think it's time for Fossil to rally

By
A A A
Share |

The bulls are hoping for another strong earnings report from watch maker Fossil a week from now.

optionMONSTER's Heat Seeker monitoring program detected the purchase of about 2,000 May 100 calls for $3.89 and the sale of a matching number of May 110 calls for about $1.15. Volume was more than triple open interest at both strikes, indicating that a new position was initiated.

Known as a bullish call spread , the trade cost about $2.74 and will earn more than 250 percent if the stock closes at or above $110 on expiration. (See our Education section for more on how to generate leverage with options.)

FOSL rose 2.97 percent to $98.12 yesterday. The stock experienced a gut-wrenching drop last May after providing guidance below analysts' expectations, but it has been working its way higher since. The last report in February beat consensus, driving the shares briefly above $110 before they retreated. The next release is scheduled for Tuesday, May 7.

Total option volume was triple the daily average in the session, with calls outnumbering puts by almost 5 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.

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


This article appears in: Investing , Options

Referenced Stocks: FOSL

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

74,972,696
  • $16.29 ▲ 1.24%
58,110,176
  • $63.0301 ▲ 2.92%
52,113,540
  • $4.30 ▲ 4.37%
45,053,607
  • $26.18 ▲ 3.40%
40,556,519
  • $3.22 ▲ 0.94%
33,697,770
  • $50.83 ▲ 1.90%
33,642,638
  • $4.56 ▲ 2.01%
31,530,460
  • $20.06 ▲ 11.88%
As of 4/22/2014, 04:07 PM