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May 31, 2013  Fri 11:05 AM CT

URBN: SEE CHART GET CHAIN FIND STRATEGIES
As Urban Outfitters bounces today, one trader is betting that the apparel retailer will hit record highs in coming months.

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.
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Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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