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Quiksilver hits wave of call selling
Quiksilver is trying to rebound today, but doubters remain.
optionMONSTER's tracking systems detected a flurry of call selling in the surfing-themed apparel company. It started with the May 6 contracts, where more than 1,200 were sold for $0.10. An even 1,000 were also sold in the May 5s for $0.20. Volume was more than twice open interest in both strikes.
ZQK is up 4.83 percent to $3.47 in afternoon trading but has lost more than one-third of its value since the beginning of last month. Its last quarterly report on Sept. 1 was mixed, with revenue beating estimates but earnings missing forecasts because of inflationary pressures.
Today's call sellers probably believe that upside will be limited. The trade earns them income now while obligating them to sell shares at the strike prices if ZQK rallies back to those levels.
Overall option volume is 5 times greater than average so far in the session.