Bulls Bet on Cosmetics Distributor on Emerging-Markets Demand

OptionMonster's real-time tracking systems detected two waves of bullish buying Thursday. The first took place in the morning when more than 2,700 October 34 calls were purchased for $0.65 to $0.75 with no open interest at that strike. The second occurred in the afternoon when more than 4,200 July 33 calls were bought for $0.40 and $0.45 against open interest of 2,999 contracts.

AVP shares closed yesterday at $30.38, up 2.32 percent on the day. (See tickerfor today's quotes.) The shares are trying to establish themselves over their 200-day moving average,

Avon Products saw a lot of bullish trading in April, followed by a strong earnings report earlier this month, but it then fell on concerns about a probe into allegations of bribery in foreign markets. The real story for traders, however, is that emerging markets are driving AVP right now.

Yesterday's option volume was nearly double AVP's daily average. Total calls outnumbered puts by more than 18 to 1.

The company's next earnings report is scheduled for July 25.


Russell is long AVP.

Options Trading School:



David Russell is a reporter and writer for OptionMonster.