Under Armour calls sold despite gains

Shares of Under Armour are pushing back toward 2011 highs, but option traders see limited upside.

UA is up 1.38 percent to trade at $82.15 this morning. The athletic-apparel company has been trending higher from support at $70 in the last two months and is attempting regain highs from October and November, when it traded just above $87.

Option activity today is betting on those highs holding. More than 2,100 March 87.50 calls have traded against open interest of just 23 contracts, according to optionMONSTER's systems. The calls were sold, with the largest block of 1,785 going for $1.35.

This call selling may have been done naked as a bet that UA will remain below that $87.50 strike price. They could also have been sold against a long stock position in a trade that expects shares to rise to that level but not much above it. (See our Education section)

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