Short-term bull targets Tiffany
Chris McKhann | [email protected]
A call spread with just one day until expiration dominates today's option volume in the iconic jeweler. A trader bought 3,000 Weekly 94 calls for $1.06 and sold 6,000 Weekly 96 calls for their bid price of $0.43. Volume was above previous open interest in each strike, indicating that this is new activity.
The trader is spending $0.20 to open this ratio spread, which is the amount at risk if TIF remains below $94 through the end of tomorrow's session. The maximum gain would come with shares at $96, but above that the trader is effectively short 300,000 shares of the stock. (See our Education section)
TIF is trading at $91.93, up 0.25 percent on the day. That is not far of the stock's closing high of $92.78 set on the last day of 2013.