Market News

January 23, 2014  Thu 10:10 AM CT

Call selling sees limited upside for Bon-Ton Stores as shares trade near lows.

optionMONSTER systems show that a trader sold 2,500 July 12 calls for the bid price of $1.35 on a wide bid/ask spread. The volume was slightly more than the open interest, so this clearly is a new position.

The trader is betting that BONT won't see much upside beyond $12. It is likely that the options were sold against long shares in a covered-call position, which would be bullish up to that strike price but gives up any gains beyond that. (See our Education section)

BONT is down 1.92 percent to $11.22 this morning. The department-store operator was above $18 a month ago but has fallen to its lowest levels since early November. 
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