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Ann pullback draws bullish shoppers

David Russell (david.russell@optionmonster.com)

Ann has been pulling back, and the bulls are jumping in.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 2,000 December 36 calls for $2.20, matched against the sale of an equal number of December 41 calls for $0.45 and $0.50. Volume was more than 40 times open interest at both strikes.

The trade cost $1.70 and has the potential to earn a profit of 194 percent if the stock closes at or above $41 on expiration. It's known as a bullish call spread because it leverages a move between two prices. (See our Education section)

ANN is off 0.22 percent to $36.02 today. The New York-based retailer is up 36 percent in the last three months after results beat expectations on Aug. 17. Shares have been consolidating in a range since. They bounced today after testing their 50-day moving average, which could be leading some chart watchers to expect the uptrend to continue.

Overall option volume is 6 times greater than average in the name so far in the session, with calls outnumbering puts by 71 to 1.

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