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Bulls shopping at Men's Wearhouse

Men's Wearhouse pulled back after a strong earnings report, and the bulls are shopping for further upside.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 2,970 April 55 calls for $0.80 and the sale of an equal number of April 52.50 puts for $0.90. Volume was more than triple open interest at both strikes, which indicates new positions were initiated.

Long calls lock in the price where a stock can be bought, while short puts generate income and force investors to purchase shares if they fall to a certain level. (See our Education section.) Combining the two strategies is highly bullish, with potentially huge leverage to the upside or downside.

MW rose 0.65 percent to $52.84 in afternoon trading. Profit and sales both beat estimates on March 11, allowing management to raise full-year guidance. The retailer of men's clothing is in the midst of integrating its purchase of Jos. A Bank and has delivered several winning trades in recent months.

It first lit up Heat Seeker in mid-December , returned on Jan. 21 and then saw more upside strategies earlier this month .

Total option volume is 7 times greater than average so far in the session.

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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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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