One investor is keeping hope alive in Big Lots as the retailer
holds long-term support.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 10,000 April 32.50 calls for $0.85 and the sale of
8,201 January 30 calls for $0.05. Volume was below open interest in
January, indicating that an existing long position was closed and
rolled forward in time.
The trade cost about $809,000 and gives the investor an additional
three months of
to the stock. Given that the January 30s expire this Friday, they
might have had no bid by today, so adjusting the position yesterday
probably saved money. (See our
section for more on how time affects
BIG, which rose 3.58 percent to $29.78 yesterday, has been trading
in its current range since a weak earnings report sent the shares
plummeting on Aug. 23. The following release last month was better
The shares have bounced around their current $27-$29 range several
times in the last three years, which could be leading some chart
watchers to think that the stock will climb from here. The call
roll simply provides more time for that move to occur.
Total option volume was 35 times greater than average in the
session, according to the Heat Seeker. Calls outnumbered puts by
more than 90 to 1.
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.
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