TJX leads upside action in retailers


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Retail emerged as an early theme in option activity on Black Friday, with discounter TJX leading the way.

optionMONSTER's Heat Seeker system detected heavy buying in the December 65 calls, with large blocks hitting earlier for $0.55 to $0.75. More than 5,000 traded against previous open interest of 1,495 contracts, indicating that new positions were initiated.

These long calls lock in the price where a stock and be purchased, letting investors cheaply position for a rally. If it climbs, they stand to earn significant leverage. (See our Education section)

TJX fell 0.38 percent to $62.88 on Friday but was up almost 1 percent at one point in the session. Other retailers such as Macy's, L Brands, and American Eagle Outfitters also saw bullish activity in the session, typically the busiest shopping day of the year.

Overall option volume was quadruple the daily average, with calls accounting for almost four-fifths of the total.

(A version of this post appeared on InsideOptions Pro on Friday.)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Options

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