SKX – Skechers USA, Inc. – Bullish options investors are engaging in plain-vanilla call buying on the maker of contemporary footwear this morning with shares of the underlying stock up 1.2% to $37.08 as of 11:10 am (ET). Earlier in the session Sketchers’ shares rallied 3.25% to secure an intraday high of $37.83. Traders anticipating continued appreciation in the price of the shoe maker’s shares picked up approximately 1,900 calls at the August $40 strike for an average premium of $2.20 apiece. Call buyers make money if Sketchers’ shares surge 13.8% over the current price of $37.08 to surpass the average breakeven price of $42.20 by expiration day in August. SKX shares traded above the effective breakeven price of $42.20 as recently as June 22, 2010.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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