Buyers find value in Guess at support

By
A A A
Share |

Guess has been struggling for more than a year, but investors on Friday thought the retailer is simply too cheap.

optionMONSTER's Heat Seeker monitoring system detected the purchase of about 6,900 March 26 calls, most of which priced for $1.45 to $1.50, against previous open interest of just 54 contracts. The bulk of the volume occurred early in the session, and those long calls later traded for as much as $1.95 as the shares rebounded from their lows. (See our Education section)

GES fell 5.79 percent to $24.39. It dropped after announcing the resignation of chief operating officer J. Michael Prince and chief financial officer Dennis Secor. The apparel company's stock opened at a three-year low, down by more than 10 percent, before paring those losses.

While consumer-discretionary stocks in general have outperformed the broader market this year, GES has struggled because of its big exposure to Europe. Nonetheless, the stock is now close to long-term support levels, which could be leading some traders to think that it's a good value. The company has also been growing quickly in Asia.

Overall option volume was 13 times greater than average on Friday, with calls outnumbering puts by 4 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: GES

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

75%

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM