Oxford Industries gapped lower last month on a weak forecast,
and one investor is throwing in the towel.
optionMONSTER's tracking systems detected the sale of 6,900 April
20 calls for $2 against open interest of only 776 contracts. The
trade pushed total option volume in the apparel stock to 18 times
greater than average.
OXM fell 0.32 percent to $21.53 yesterday. The stock had rallied
more than 600 percent between March 2009 and late last year but has
been unable to maintain upward momentum. It's been moving sideways
since October and been making lower highs and lower lows,
suggesting a possible correction lower.
OXM plunged on March 30 after management's full-year profit
forecast came in below analysts' estimates. It reversed after
attempting to fill that gap yesterday, suggesting that a new
resistance level has been established.
The calls could have been sold by an investor looking to exit a
position in the shares. The trade may have also been executed by a
short seller who expects OXM to stay below $22 for the rest of the
The transaction accounted for more than 90 percent of the options
volume in the stock yesterday.
(Chart courtesy of tradeMONSTER)
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.