Upside Purchased on Saks (SKS)
Shares of Saks Inc. (SKS) are trading higher on the session by 1.84%, at $10.49. The stock has been range bound for the better part of the year, bouncing off of the $9.50 level and selling off near $12.00.
With shares finding some support near $10.00 after a month-long, 15% slide, one options trader is purchasing upside calls on SKS.
A short while ago, the October $11.00 call was purchased 2,252 times, on the offer, for $0.15. The trader came back seconds later and bought 1,248 more contracts, also on the offer, for $0.20. With open interest of only 1,274, this is clearly new long positioning on the strike.
Implied and historical volatility have diverged over the past month, currently registering 38% and 23%, respectively. At $0.175, the Oct $11.00 call traded at roughly 42% vol. Clearly someone is expecting further movement in the name over the next few weeks; note that SKS is not scheduled to report earnings until November 13th.
Saks Incorporated is a department store retailer. The company and its subsidiaries is engaged in the operation of Saks Fifth Avenue stores and SFA e-commerce operations, as well as Saks Fifth Avenue OFF 5TH.
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