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October 13, 2016  Thu 12:11 PM CT

Traders are looking for a quick pop in Michael Kors.

optionMONSTER's tracking program shows that 3,100 Weekly 45.50 calls expiring this week were purchased for $0.60 to $0.80 today. This is clearly fresh buying, as there was no open interest in the strike before the session began.

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)

KORS is down 1.15 percent to $46.23 afternoon trading and has fallen 9 percent in the last three months. The apparel retailer's next quarterly results are expected to be released in pre-market hours on Nov. 2.

Overall option volume in the name is twice its daily average today. Calls outnumber puts by a bullish 4-to-1 ratio.

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