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Current DateTime: 08:38:57 23 Nov 2009
LinksList Documentid: 30328029
Options Bullish on This Retailer (!) Stock
Published: Tuesday, 6 Oct 2009 | 10:06 AM ET
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By: Mike Yamamoto
Managing Editor, OptionMonster

Limited Brands drew upside options trading ahead of its September sales report Thursday.

The women's apparel retailer jumped 7.75 percent yesterday (Monday) to close at $17.38, back near its 52-week high of $17.73 reached Sept. 23. LTD stock [LTD  Loading...      ()   ] is up nearly 70 percent in the last three months.

CNBC/OptionMonster Trading School:

The options activity was concentrated at the January 17.50 contracts, which averages just 180 calls trade each day but yesterday saw 4,185 change hands above open interest. The bulk of those calls were bought for $1.35 and $1.45, according to OptionMonster's proprietary tracking systems.

The stock would need to rise at least 8.5 percent for those calls to turn a profit by the time they expire in mid-January.

The company will release its same-store sales report for September before the bell on Thursday, at 7:30am ET. It is scheduled to report its third-quarter earnings results on Nov. 18.

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Mike Yamamoto is an analyst and writer for OptionMonster.

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