Ann is trying to rebound after gapping lower, but one trader
apparently thinks that it's running out of gas.
optionMONSTER's tracking systems detected the sale of more than
6,000 February 24 calls for $0.15. Volume is 14 times open interest
in the strike.
The trader is now obligated to sell shares in the women's apparel
company for $24 if they end the week above that level. If they
don't, he or she will get to keep the credit and the contracts will
ANN is down 0.61 percent to $23.50 in early afternoon trading. It
dropped sharply on Feb. 2 after issuing a weak preliminary earnings
report and since then has been drifting higher. Based on today's
call selling, the investor expects that rebound to peter out.
He or she may be selling the calls
against an existing long position
or simply be speculating against the stock. The trade seems mainly
designed to profit from the contracts losing value into expiration
this Friday. (See our
Overall option volume in the stock is quadruple the daily average
so far in the session.
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