Phillips-Van Heusen has broken into uncharted territory, and the bulls are continuing to stampede into the name.
Total optios volume in the maker of shirts, suits, ties and shoes was 16 times greater than average yesterday. Calls dominated the activity, accounting for 9 out of every 10 contracts traded.
The December 75s and December 70s were the busiest strikes. The 75s were steadily purchased as the session progressed, climbing from $0.75 to $1.35. The volume was 4,021 versus open interest of 685, according to optionMONSTER's Heat Seeker tracking system.
The 70s traded 1,400 times for $2.85 to $3.40, though the turnover was below open interest in the strike.
PVH rallied 1.73 percent to a new all-time closing high of $71.23 yesterday. After the bell the company reported better-than-expected earnings and revenue while raising full-year guidance but edged slightly lower in extended trading.
The company has been benefiting from strong consumer demand for apparel and a surprisingly strong year-end shopping season. Retailers such as J.C. Penney and Abercrombie & Fitch, for instance, reported impressive same-store sales for November.
The breakout in PVH is also likely causing one investor to regret one trade on Tuesday, when they sold calls and bought puts to position for a potential drop. (See story here)
(Chart courtesy of tradeMONSTER)
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