Guess receives a vote of confidence
Traders are showing support for Guess ahead of quarterly results in less than two weeks.
optionMONSTER's monitoring systems detected the sale of 2,500 April 20 puts for $0.55 to $0.60 yesterday. This is clearly new positioning, as open interest in the strike was only 47 contracts before the trades occurred.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
GES rose 4.95 percent to $22.26 yesterday and is up 18 percent in the last month. The apparel retailer is scheduled to report earnings after the close on March 16.
Overall option volume was 8 times greater than average.
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