Limited Brands reports earnings on May 15 after the market closes.? The stock trading 48.00 is seeing heavy bullish activity today ahead of the report.
Traders have bought 2,500 of the May 48 calls paying an IV of 27% a price of 1.35 against 47.80 stock as a reference.? They have also bought 5,000 of the May 50 calls paying an IV up to 25.5%, a price of .62 using 48.05 stock for a reference.
Both trades are outright bullish trades and are likely plays on the stock having a better than expected earnings report on May 15.? They may also be hedges against a short, but the May 48?s being ATM calls would not be the optimal option to buy if one was short.