Procter & Gamble Co. (PG) – A
burst of call buying in the weekly options on consumer products giant
Procter & Gamble appears to be a sizable bullish bet that shares
will rally heading into the weekend. Shares in PG are up 0.30% today at
$64.61 ahead of the Consumer Analyst Group of New York Conference in
Boca Raton, Florida on Thursday. Statements from P&G's top
management, particularly regarding details of the Company's cost cutting
plans, could move the stock tomorrow. The investor or investors
responsible for exchanging more than 16,000 calls at the Feb. '24 $65
strike against open interest of 2,037 contracts for an average premium
of $0.15 each, may profit at expiration should shares settle above the
average breakeven price of $65.15.
Chico's FAS, Inc. (CHS) – Bullish
traders who purchased Chico's call options in advance of the retailer's
positive earnings surprise on Wednesday, in some cases, doubled their
money overnight. Shares in the seller of women's clothing and
accessories rallied as much as 15.5% to $14.80 this morning after the
Company beat top- and bottom-line fourth quarter estimates, and forecast
higher than expected full year sales of $2.5 billion. Options players
speculating shares in Chico's could surge after earnings snapped up call
options in the front month that today trade at substantially higher
premiums. One strategist appears to have purchased around 1,400 calls at
the Mar. $14 strike for a premium of $0.25 each yesterday afternoon.
The sharp rise in CHS shares this morning now has the $14 strike calls
trading at more than twice that amount, with a last traded price of
$0.70. Call selling at the $14 strike today may represent profit taking
on the position. Meanwhile, fresh call selling up at the April $15
strike, where some 425 contracts sold for an average premium of $0.80
each, indicates some strategists expect the stock has made its move and
has little fuel left to run higher. Investors selling the call options
walk away with the full $0.80 in premium per contract as long as shares
in the women's apparel retailer settle below $15.00 at expiration day in
April.
Sourcefire, Inc. (FIRE) – Shares
in the provider of network security functions and solutions jumped
nearly 25.0% to a record high of $44.73 today on better-than-expected
fourth-quarter earnings and full year guidance from the Company. Call
activity on Sourcefire this morning suggests shares may extend gains and
continue to hit fresh highs in the next few months. More than three
call options are changing hands on the stock for each single put in
play, with the bulk of volume building in the March and April expiries.
Investors positioning for shares in Sourcefire to continue to climb
ahead of April expiration exchanged some 640 calls at the April $45
strike against open interest of just 15 contracts. The majority of the
volume appears to have been purchased for an average premium of $2.39
apiece. Buyers of the $45 strike calls stand ready to profit at
expiration should FIRE's shares rise another 5.95% to surpass the
average breakeven point on the upside at $47.39. The April $50 strike
calls also attracted buyers, with around 205 of the contracts trading at
an average premium of $1.06 a-pop. Finally, traders already long call
options on Sourcefire ahead of the nearly 25.0% move to the upside have
the opportunity to take big profits. Investors that appear to have
picked up around 265 calls at the Mar. $45 strike for an average premium
of $0.30 back on February 9, are now holding contracts that trade at
$1.70 at last check.