CHS – Chico’s FAS, Inc. – Optimistic options players are buying calls on the national specialty retailer of private branded women’s clothing and accessories today perhaps to get in on the ground floor of what could wind up being a significant rebound in the price of its shares. CHS’s shares plunged 12.7% on Tuesday from an intraday high of $10.49 to an intraday low of $9.16 after it was added to Goldman Sachs’ conviction sell list. Shares of the retailer inched slightly higher by 0.10% today to trade at $9.41 by 12:40 pm ET. Investors itching for a near-term resurgence in the value of CHS shares scooped up approximately 2,400 calls at the August $10 strike for an average premium of $0.29 apiece. Call buyers make money as long as the clothing retailer’s shares surge 9.35% over the current price of $9.41 to exceed the average breakeven point on the calls at $10.29 ahead of August expiration.
Affiliation: Interactive Brokers
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.
Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.
Visit: Interactive Brokers