Traders Like the Look of Vera Bradley
Traders want to bag gains in women's accessories company Vera Bradley.
OptionMonster's tracking program detected the purchase of about 3,000 December 30 calls for $0.70 to $1.05. Volume was more than 200 times open interest at the strike, indicating that new positions were initiated.
Calls lock in the price where investors can buy shares, so they can generate significant leverage in the event of a rally. If the stock doesn't move, however, they will expire worthless.
Vera Bradley shares rose 0.07 percent to $26.89 on Friday. The stock has been working its way higher since the summer and is now trying to hold support at its 200-day moving average. Short interest represents more than 40 percent of the float, which could potentially draw buyers to the stock.
Total option volume in the name was 18 times greater than average in the session, with calls outnumbering puts by a bullish 19-to-1 ratio.
—By CNBC Contributor David Russell
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David Russell is a reporter and writer for OptionMonster. Russell has no positions in VRA.
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