Last-minute bulls are shopping at Jones Group, which sells women's apparel and accessories.
optionMONSTER's Heat Seeker tracking system detected a flurry of call buying in the name in the final 30 minutes of Friday's session. All the activity focused on the January 12s, which traded more than 2,000 times against open interest of just 468 contracts.
Premiums started at $0.10 but quickly ratcheted up to $0.15 and then $0.20. The stock rose at the same time, adding to earlier gains. There was also heavy buying in the January 11s for $0.35 to $0.45, though volume was below open interest in that strike.
JNY ended the day up 8.39 percent to $10.47. It's been trending lower since April 2010, when it peaked above $22. The stock has been basing around $10 since the market crashed in August and seems to be holding a long-term peak established way back in 1992. Some chart watchers may believe that support is now in place and expect a rally.
Earnings have beaten estimates the last three times that JNY reported, though revenue has been light in recent quarters. (See researchLAB for more)
Overall option volume was 10 times greater than average on Friday, with calls outnumbering puts by a bullish 194-to-1 ratio.
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