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.
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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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