Tiffany pulled back on Friday, and traders were shopping for a rebound.
OptionMonster's tracking programs detected the purchase of about 3,000 May 75 calls for $1.01 to $1.05. The volume was more than twice the previous open interest at the strike, indicating that this is fresh buying.
These calls lock in the price where shares can be purchased in the jewelry retailer no matter how high it might rise. They can generate significant leverage in the event of a rally, letting investors place upside bets at a cost much lower than buying the stock outright, but will expire worthless if Tiffany remains below the $75 strike price through expiration in mid-May.