Option volume in the Gap is unusually bullish as its shares trade just below five-year highs.
The average daily volume in the name is 5,000 contracts, but eight times that number traded yesterday. showed that one block of 22,000 April 24 calls was bought for $0.30 against open interest of just 21 contracts, so it was clearly a new position being opened.
Traders were also buying the June 24 calls, with two blocks of 4,250 contracts going for $0.75 and $0.80 within a second. This buying was less than half the open interest of 9,379 contracts, but it did come within a couple of minutes of the larger trade so they could be related.
GPS finished the session at $23.15, down 0.63 percent from yesterday, which was its highest close in five years and just off the 52-week intraday high of $23.36 hit in October. Shares have been in a near-vertical run from $19 at the beginning of February.
All of this call buying certainly appears to be a bet that GPS shares will break to new highs over the next month.
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Chris McKhann is an analyst and writer for .