Market News

January 10, 2017  Tue 7:47 AM CT

A large trader is adjusting a bullish position in Tiffany.

Our monitoring program detected the sale of 3,000 February 85 calls for $0.55 and the purchase of 3,000 May 80 calls for $3.58 yesterday. Volume was below open interest in the February contracts, indicating that a bullish position was rolled forward by three months to a lower strike that is closer to the money.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

TIF fell 0.36 percent to $77.16 yesterday and is down 7 percent in the last month. The jewelry icon, which announced bullish quarterly results on Nov. 29, is expected to report its near earnings numbers in pre-market hours on March 16.

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