The bears have made money in Quicksilver, and now the bulls are
taking a shot ahead of earnings this week.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of almost 2,500 October 5 calls, most of which priced for $0.45.
Volume was well above open interest at the strike, indicating that
new positions were initiated.
lock in the price where shares can be purchased in the surfing
retailer, giving them potentially significant leverage to the
upside. The trade appears before earnings are released on Thursday
afternoon, so the investor is wagering on a strong report.
ZQK is up 3.84 percent to $5.14 in morning trading but has fallen
more than 30 percent in the last three months. Our premium
subscribers captured some of that move, picking up the
January 6 puts
on July 12 for $0.50 and selling them for $0.95 barely a month
later. Puts work the opposite as calls, locking in selling prices
and gaining value when shares decline. (See our
Overall option volume is ZQK is twice the daily average so far
today, according to the Heat Seeker, with calls accounting for a
bullish 87 percent of the total.