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May 1, 2013  Wed 4:45 AM CT

FOSL: SEE CHART GET CHAIN FIND STRATEGIES
The bulls are hoping for another strong earnings report from watch maker Fossil a week from now.

optionMONSTER's Heat Seeker monitoring program detected the purchase of about 2,000 May 100 calls for $3.89 and the sale of a matching number of May 110 calls for about $1.15. Volume was more than triple open interest at both strikes, indicating that a new position was initiated.

Known as a bullish call spread, the trade cost about $2.74 and will earn more than 250 percent if the stock closes at or above $110 on expiration. (See our Education section for more on how to generate leverage with options.)

FOSL rose 2.97 percent to $98.12 yesterday. The stock experienced a gut-wrenching drop last May after providing guidance below analysts' expectations, but it has been working its way higher since. The last report in February beat consensus, driving the shares briefly above $110 before they retreated. The next release is scheduled for Tuesday, May 7.

Total option volume was triple the daily average in the session, with calls outnumbering puts by almost 5 to 1.

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