Nu Skin Enterprises has been ripping higher ahead of its
earnings report next week, leading one investor to adjust the
optionMONSTER's tracking systems detected the sale of about 1,675
May 30 calls, mostly for $3.52 to $3.58, against existing open
interest. At the same time, a new position was opened in matching
number of May 35 calls for $0.75 to $0.93.
NUS rose 5.8 percent to close at a record high of $33.56 yesterday.
Fueled by the launch of the new LOC product, the maker of
anti-aging treatments beat analysts' forecasts the last time it
reported results on Feb. 4. The next release is scheduled for the
pre-market on April 28.
The shares are up 37 percent in the last three months and just
broke through the level where they traded in early 1997, shortly
after going public.
Yesterday's call-roll strategy allowed the investor to recover
about $2.60 of premium while remaining long exposure to the stock.
It also increased the gamma from 5 to about 12, which means that
the position will become more sensitive to changes in NUS's price
as the shares appreciate. (See our Education section)
Overall option volume in the stock was 16 times greater than
average in the session. Calls accounted for 95 percent of the
(Chart courtesy of tradeMONSTER)