The bulls think Dollar General will keep on running.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 2,500 June 55 calls for $0.98 and the sale of an equal number of
May 52.50 calls for $0.53. Volume was below open interest in the
May contracts, which indicates that an existing long position was
closed and rolled to the higher strike.
The investor paid $0.45 and now has an additional month of
to the discount retailer. Adjusting the position today spared him
or her from losing money at an accelerating pace as expiration
approaches on Friday. (See our
section for more on how
time affects the value
DG is down 0.3 percent to $52.64 in morning trading. The stock
doubled between early 2011 and last summer, pulled back to $40, and
has been regaining its momentum this year. The last earnings report
in March beat expectations, and the next set of results is due
early next month.
Total option volume is twice the daily average in DG so far today,
with not a single put trading so far.
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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