Chs michael kors holdings ltd Tiffany co. (Tif)Options on the world second largest luxury jewelry retailer are mixed ichaelorhandag
today, with much of the action centering in the front month calls and
puts.In new york, is more than twice the stock 90 day average volume of
9, 971 options.The pick up in options activity arrives on the heels of
the company fourth quarter results and full year earnings guidance ahead
of the opening bell.The jeweler full year earnings forecast at $4.05
per share beat analyst expectations, sending the price of the underlying
up as much as 8.0% on Tuesday morning to $74.20.The sharp rally in
tiffany shares is a move one strategist had been positioning for last
week.It appears the investor initiated a bull call spread back on monday
march 12, buying the april $70/$75 spread roughly 3, 500 times at an
average net premium of $1.54 per contract.The rise in open interest at
both strikes in the days that followed may mean the trader added to the
position last week.The bullish play on the jeweler is working out so
far, with the shares well above an estimated breakeven share price of
$71.54 on the spread.The trader walks away with maximum available
profits as long as tiffany shares move up another 1.1% over today high
of $74.20 to top $75.00 at expiration next month. Michael Kors holdings,
ltd. (Kors)The number of open options positions on michael kors
holdings, ltd., as measured by open interest of 30, 337 total contracts,
is roughly 65.0% comprised of call positions.The preponderance of open
kors calls versus puts was heightened yesterday by one large transaction
involving roughly 10, 200 far out of the money front month calls.The
company guided up its estimate for fourth quarter earnings and said same
store sales are up nearly 36.0%.Shares in the name are down 0.30% at
$45.19 today, however, on supply chain concerns stemming from a move to a
new distribution center and related delays in shipments to customers.It
looks like the large block of april $50 calls on monday sold for a
premium of $1.00 per contract.The calls were not marked as a spread and
appear to have been sold outright.The trader selling the contracts may
walk away with maximum possible profits of $1.00 per contract at April
expiration as long as shares in Kors fail to rally above $50.00.The move
lower in shares of the apparel and accessories retailer today already
has the position working in his or her favor, as the call options could
potentially be bought back this afternoon at $0.40 each for net profits
of $0.60 apiece.Overall options volume of 10, 550 contracts in play on
kors today is roughly three times the 90 day average option volume of 3,
505 michael kors bags uk
contracts. Chico fas, inc. (Chs)Women clothing and accessories
retailer, chico fas, inc., popped up on our by options volume market
scanner this morning after a large number of call options changed hands
in the front month.On the east coast.Options volume on chs is
concentrated at the april $16 strike, where more than 5, 900 calls
changed hands against open interest of 1, 162 positions.The majority of
the calls appear to have cheap michael kors handbags
been purchased for an average premium of $0.40 apiece.Buyers of the
options stand ready to profit should the price of the underlying rally
another 5.3% to surpass the average breakeven price of $16.40 at
expiration.Chico shares are up 40.0% year to date and last traded north
of $16.40 in July 2011.