Someone apparently thinks that Deckers Outdoor is ready for a
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 3,300 September 60 calls for $2.40 and the sale of an equal
number of September 67.50 calls for $0.40. At the same time, 3,300
August 57.50 calls were sold for $2.15 and an equal number of
August 65 calls were bought for $0.15.
Volume was below previous open interest in the August strike but
not the September options, indicating that a
vertical call spread
was closed and rolled forward in time. The net cost was zero,
excluding fees and commissions.
The strategy controls a move between two prices at low cost,
offering the potential for significant leverage. Adjusting the
position provides another month in the trade while preventing the
investor from being assigned shares at August expiration at the end
of next week. (See our
DECK rose 2.44 percent to $59.21 yesterday. The footwear maker lost
about three-quarters of its value between November 2011 and October
2012 but has been trying to rebound since. While quarterly results
have mostly lagged expectations, the shares have been climbing
against significant short interest and now seem to be finding
support above the key 50-day moving average.
Total option volume was more than triple the daily average in the
session, according to the Heat Seeker. Calls outnumbered puts by
more than 5 to 1.
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