Gap is rallying today, and traders are scrambling for a piece of
optionMONSTER's Heat Seeker monitoring system detects extreme
upside positioning today, with short-term bets leading the order
flow. More than 4,500 Weekly 37.50 calls expiring tomorrow were
purchased, mostly for $0.18 to $0.34, in volume far above previous
open interest of just 331 contracts.
The February 38s were the second most popular contracts, with
almost 2,500 purchased for $0.63 to $1.01. The March 36 and
February 40 calls rounded out the activity.
lock in the price where shares can be purchased, letting investors
cheaply position for a rally. This way, only a limited amount of
capital is at risk if they're wrong about the direction. (See our
GPS is up 3.36 percent to $38.03 in afternoon trading. The
once-mighty retailer rallied hard in 2012 and early 2013, showing
signs of coming back to life after more than a decade of
languishing in a range.
The stock has pulled back along with other companies in the
industry but has been holding support around the same $36 level
where it peaked 15 months ago. That could make some chart watchers
believe that it's ready to bounce.
In addition to the technicals and improving fundamentals, there was
also takeover buzz in the name today.
Calls account for a bullish 78 percent of today's option volume,
according to the Heat Seeker. Overall activity is 6 times greater
than average amounts.
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