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.
