Shares of American Eagle Outfitters (AEO) are ticking higher this morning. Currently, AEO is higher by 0.23%, trading at $21.93. The stock recently rallied above a key resistance level, topping at $22.49 on Wednesday.
One trader is betting that shares will remain capped for the next few weeks. Right after the opening bell, the October $23.00 call was sold 2,829 times, on the bid, for $0.65. Given the current open interest of 2,563 contracts, this appears to be new positioning.
Volume on the strike has since risen to ~3,000 contracts.
Current implied and historical volatility is registering 32% and 34%, respectively, which is down from 49% and 71% just three months ago. At $0.65, the Oct $23 call was sold at 31% vol.
American Eagle Outfitters, Inc. is a specialty retailer that operates in the United States and Canada, and online at ae.com. AEO, Inc operates under the American Eagle , aerie by American Eagle , and 77kids by american eagle brands.