Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 30, 2013  Wed 3:47 AM CT

SPLS: SEE CHART GET CHAIN FIND STRATEGIES
Staples drew bullish option activity for the second session in a row yesterday.

optionMONSTER's Heat Seeker system detected the purchase of 3,000 March 15 calls at the same second yesterday, led by a block of 2,628 that went for $0.15. The volume was nearly double the strike's open interest of 1,630 at the start of the session, so this is clearly fresh buying.

SPLS rose 2.17 percent yesterday to finish at $13.66, its highest close since May 2012. The office-supply retailer has been running higher since breaking resistance at the $12 level earlier this month.

Yesterday's long calls, which lock in the price where traders can buy stock, are looking for SPLS to gain roughly 11 percent or more by mid-March. The options could be sold earlier at a profit if their premiums rise with any rally before then, but they will expire worthless if they under below the $15 strike price at that time.

The company is scheduled to announced fourth-quarter and full-year results on March 6 before the market opens. The options expire eight sessions later.

The calls pushed total option volume in the name to about 8,900 contracts, nearly double its daily average of 4,787 in the last month. Calls outnumbered puts by more than 4.5 to 1.

The activity follows heavy buying in Staples' June 14 calls on Monday. Arch rival Office Depot has seen bullish trading as well recently.
Share this article with your friends


Related Stories

SPLS

Staples seen holding current levels

September 17, 2014

The office-supply retailer is climbing to four-month highs today, and a large trade is betting that current levels will hold through the end of this week.

SPLS

Bulls target Staples, Office Depot

September 15, 2014

There's been talk of a possible merger between the two office-supply retailers for weeks, and the bulls are placing big bets on both names.

SPLS

Bulls shopping for gains at Staples

September 2, 2014

The office-supply retailer surged following a note by Credit Suisse that the company could merge with rival Office Depot.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

How Can Equity Traders Beat the Algos

Education & Strategy

When to go in or out of the money

Some of our subscribers recently asked how to gauge positions that are in or out of the money, so I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER