Call buyers try on Urban Outfitters


Traders are apparently looking for a positive earnings report from Urban Outfitters in a little more than a week.

About 1,900 March 41 calls have traded in a strong buying pattern this morning with prices rising from $1.10 to $1.35, according to optionMONSTER's Heat Seeker tracking system. The volume is nearly 5 times the strike's open interest of 386 contracts before the session began, indicating new activity.

URBN is up 1.07 percent to $40.61 today. The specialty retailer had been declining since its 52-week high of $44.14 reached Feb. 7 but bounced off its 100-day moving average on Tuesday and has been rising since.

The long calls are betting that URBN will gain roughly 4 percent or more by March 15, two days after the company reports fourth-quarter results. But these options will quickly lose value if the shares don't move soon. (See our Education section)

Total option volume exceeds 2,500 contracts so far, already triple its daily average for the last month. Calls outnumber puts by 4 to 1.

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