These calls lock in the price investors must pay to buy the department-store company’s stock. They can generate some major leverage if the stock rallies, but will expire worthless if it doesn’t.
Macy’s shares rose 0.43 percent to close at $37 and has been edging near its 100-day moving average, which has been a level of resistance since shares fell below it in late May.
The company faces plenty of competition, though July same-store sales were up about a month ago. Macy’s also reiterated full-year guidance.
Calls outnumbered puts by 17,000 to about 11,000, a reflection of the bullish sentiment. Total volume was eight times greater than average.
—By CNBC Contributor Pete Najarian
Additional News: Retail Sales Fall Again as Consumers Continue to Struggle
Additional Views: At $35 Macy’s Is Oversold: Karen Finerman
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com. Najarian has no positions in M.