Bullish traders are trying PVH on for size.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of some 2,500 June 120 calls today, most of which priced for $2.70
and $2.80. Volume exceeded previous open interest of 1,926
contracts, indicating that new money was put to work on the long
Traders have now locked in $120 as an entry price on the apparel
company's stock in the next four weeks, no matter how high it may
go. It saves them the difficulty of timing a purchase and
risks much less capital
than buying the shares at full price. (See our
section for more on how to manage trades more effectively with
PVH is up 0.62 percent to $117.71 this afternoon and has been
trending higher for years. The company's brands include Van Heusen,
Calvin Klein, and Tommy Hilfiger. Its next earnings report is
scheduled for June 13, so today's trader is apparently looking for
a rally before or after the release.
Total option volume is 10 times greater than average so far today,
with calls outnumbering puts by more than 45 to 1.
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