Call buyer targets Urban Outfitters
Mike Yamamoto | firstname.lastname@example.org
optionMONSTER's Heat Seeker system detected the purchase of 2,111 July 47 calls within a few seconds this morning, almost all of them going for $0.30. This is clearly a new position, as open interest in the strike was just 62 contracts before the trading appeared.
URBN is up 0.86 percent to $42.23 in early afternoon trading. Shares hit an all-time high of $44.96 on May 20 but fell sharply after reporting first-quarter results later that day. The stock bounced at support around $41 on Wednesday and is rising above its 50- and 100-day moving averages today.
Today's call buying, which locks in the price where traders can buy the stock, is looking for URBN to rally above $47.30 by mid-July. But those options could expire worthless if shares remain below the $47 strike price. (See our Education section)
Total option volume in the name has already exceeded its full-day average. Calls outnumber puts by 26 to 1, a further indication of the session's bullish sentiment.