IB Options Brief: Dollar Tree Stores, Inc. (DLTR) & Chico's FAS, Inc. (CHS)
DLTR ñ Dollar Tree Stores, Inc.
Bearish options are in play on Dollar Tree, Inc. this morning ahead of the discount consumer goods retailerís first-quarter earnings report on Thursday. Shares in Dollar Tree are currently down 1.5% at $101.05 as of 12:50 in New York. It looks like the investor buying a sizable debit put spread on DLTR this morning paid an average net premium of $3.31 per contract for a roughly 3,000-lot June $85/$100 spread. The position makes money if shares in Dollar Tree fall 4.3% to breach the average breakeven price of $96.69, while maximum potential profits of $11.69 are available in the event that shares plunge 15.9% to settle below $85.00 at expiration next month.
CHS ñ Chicoís FAS, Inc.
Options on the retailer of casual womenís clothing and accessories attracted bullish plays on Monday morning as traders await the companyís first-quarter earnings report on Wednesday. Shares in Chicoís are bucking the broad market decline today, trading up 1.8% at $14.67 as of 12:30 pm ET. In-the-money call buyers in the May expiry are ready to profit should shares in the retailer extend gains ahead of expiration. It looks like one or more players snapped up 1,600 calls at the May $14 strike for an average premium of $0.90 apiece. Call buyers make money if shares in the name rally another 1.6% to top the breakeven price of $14.90. Shares in the apparel retailer touched a six-month high of $16.07 as recently as May 2nd.
Note: The material presented in this commentary is provided forinformational purposes only and is based upon information that isconsidered to be reliable. However, neither Interactive Brokers LLC norits affiliates warrant its completeness, accuracy or adequacy and itshould not be relied upon as such. Neither IB nor its affiliates areresponsible for any errors or omissions or for results obtained from theuse of this information. Past performance is not necessarily indicativeof future results.
This material is not intended as an offer or solicitation for thepurchase or sale of any security or other financial instrument.Securities or other financial instruments mentioned in this material arenot suitable for all investors. Any opinions expressed herein are givenin good faith, are subject to change without notice, and are onlycorrect as of the stated date of their issue. The information containedherein does not constitute advice on the tax consequences of making anyparticular investment decision. This material does not take into accountyour particular investment objectives, financial situations or needsand is not intended as a recommendation to you of any particularsecurities, financial instruments or strategies. Before investing, youshould consider whether it is suitable for your particular circumstancesand, as necessary, seek professional advice.
View Caitlin Duffy's post archive >