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January 9, 2014  Thu 9:18 AM CT

TIF: SEE CHART GET CHAIN FIND STRATEGIES
A complex trade is looking for further gains in Tiffany in the short term.

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.
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It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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