Saks has been hit hard in the last month, but buyers are stepping in today as the luxury retailer's shares appear to be finding support.
optionMONSTER's Heat Seeker tracking system shows that 4,312 October 11 calls have traded in a strong buying pattern for $0.15 and $0.20. The volume far outpaced open interest of 1,274 contracts in the strike at the beginning of the day, indicating that these are new positions.
SKS is up 1.84 percent to $10.49 this morning. The stock has fallen about 11 percent since Labor Day but seems to have found support above $10 this week.
Today's call buying is betting that SKS will close above the $11 strike price upon expiration on Oct. 19. Premiums of those options could rise before then if the stock continues to rally, allowing traders to sell them at a profit early. However, the calls will expire worthless if no rally occurs. (See our Education section)
Total option volume in the name is 2.5 times its daily average. Only 100 puts have changed hands so far, an indication of the session's bullish sentiment.
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