Sotheby's Sees Big Call Activity
On a day where Tiffany shares are getting pummeled, one company that also caters to the uber rich is seeing some pretty impressive price action: Sotheby’s.
The stock is surging 8% today, and call activity suggest options traders see more fun to come.
Call activity is over seven times its daily average volume, with over three thousand of the April 35-strike calls trading hands at an average price of $1.90 each, a trade that isn’t profitable unless BID shares hit $36.90 by April, a 15% increase.
According to some market participants, the move can be attributed to a press release the company put out this morning detailing its February impressionist auction. According to the release, the sale is expected to bring in £78 million pounds, and 8% increase from the previous year.
That would be a welcome change for the auction giant, which has seen sales of impressionist paintings in Europe suffer due to the continent’s growing debt crisis. (According to those in the know, and I claim not to be one, Europeans just love Gustav Klimt).
“That’s a positive surprise that London would see so much supply come to market in the impressionist category,” said Wedbush Securities Rommel Dionisio (Outperform). “Europe’s been the weak area in the art market.”
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