Shares of Michael Kors are continuing yesterday's rebound, but one option trader apparently doesn't see further upside in the near term.
KORS is up 1.6 percent this morning to trade at $39.35. Shares of the apparel company bounced this week off support at $36, their lowest level since gapping higher in mid-February.
optionMONSTER's systems detected the sale of 2,500 June 40 calls in one print for $2.15. The volume is twice the previous open interest, so this is a new position.
The call selling is a bet that KORS won't be gain much in the next week or so. The options were likely sold against long stock in a covered call position, which would be designed to profit from a lack of movement through expiration on June 15. The trader may also be looking to exit a long stock position while collecting the premium from selling the calls.
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Chris McKhann analyzes a three-way call spread that is looking for shares of the upscale fashion retailer to run higher by expiration in mid-June.
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