Markets

Bulls do some late-day shopping at Kohl's

The bulls are shopping at Kohl's this holiday season.

optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 5,600 January 52.50 calls for $0.25 and $0.30 versus previous open interest of 4,325 contracts. Almost all of the buying took place in the final hour of trading.

These long calls lock in an entry price for buying the stock, which means they can double or triple from a modest gain in the shares. But they will also go to zero if KSS fails to rally in the next five weeks. (See our Education section)

The department-store operator's stock fell 1.39 percent to $48.14 yesterday and is down 13 percent in the last month. It's been riding a wave of strong earnings reports since the summer and is attempting to bounce around the same level where it peaked in September. If the shares manage to hold support at this level, some chart watchers may consider it a bullish indicator.

Overall option volume was 4 times greater than average in the stock yesterday, with calls outnumbering puts by a bullish 7-to-1 ratio, according to Heat Seeker.

(A version of this post appeared on InsideOptions Pro yesterday.)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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