TJX: Options See More Upside to Retailer
"Fast Money" Contributor
TJX drew upside option activity yesterday as it continued to deliver growth in sales and profit.
The apparel company outperformed but pushed to new highs yesterday. It closed up by 1.52 percent to $58.24.
Option trades built in upside calls, with more than 1,800 October 65s bought for $0.25, according to OptionMonster's tracking systems. More than 2,800 calls traded overall in the name against fewer than 1,300 puts , and total volume was 6 times the daily average. So more traders are lining up on the bull side of the stock.
The stock continues to trade at a reasonable price/earnings ratio below the industry competition. In August, management raised earnings guidance for the remainder of 2012 following strong second-quarter results as the U.S. consumer continues to shop for bargains.
- More Options Tips from Pete Najarian
- Options Tips from Jon Najarian
- Read The CNBC Stock Blog
Options Trading School: