Options Brief: J. Crew Group

JCG – J. Crew Group, Inc. – Near-term bullish traders scooped up in- and out-of-the-money calls on the retailer of high-quality clothing and accessories today to prepare for continued appreciation in the price of the underlying stock through September expiration. JCG’s shares increased as much as 2.5% in the first half of the trading session to secure an intraday high of $33.63. Investors hoping to see J. Crew extend gains picked up roughly 2,400 in-the-money calls at the September $32.5 strike for an average premium of $2.00 each. Call buyers at this strike stand ready to make money if the retailer’s shares rally another 2.6% over today’s high of $33.63 to exceed the average breakeven price of $34.50 by expiration. Optimism spread to the higher September $34 strike where investors paid an average premium of $1.29 per contract to take ownership of approximately 1,300 calls. Traders start to amass profits on their purchase of September $34 strike call options if J. Crew Group’s shares surge 4.9% to trade above the average breakeven point at $35.29 by expiration day next month.