Pete Najarian had a winning trade in Macy’s recently, and now the bulls are back in the store.
OptionMonster’s tracking programs showed the purchase of more than 3,400 September 40 calls on Friday, with early blocks trading for $0.66. Volume was more than quadruple open interest at the strike.
Those calls (learn more) lock in the price investors must pay to buy shares in the high-flying retailer, which is back near its 52-week high of $42.17 from early May. They could generate some nice leverage in the event of a rally, but will also expire worthless if the shares don’t move.
The mojo kicked in shortly after because Macy’s shares advanced as Friday's session progressed, pushing those calls as high as $0.94 near the close. The stock ended up 2.13 percent to $39.75.
Total option volume in the name was more than triple the daily average, with calls outnumbering puts (learn more) by 10 to 1.
—By CNBC Contributor David Russell
Additional News: How Options Provide Financial Leverage
Additional Views: Option Bulls Go Shopping at Macy’s: Najarian
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David Russell is a reporter and writer for OptionMonster. Russell has no position in Macy’s.
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