Macy?s Call Options On-Trend As Shares Rise -? Featured Ticker: M
?Macy?s, Inc. ? Shares in the operator of department stores, Macy?s and Bloomingdale?s, are on the rise today, up 1.75% at present to stand at $39.37 as of 11:35 a.m. in New York, after Redbook reported U.S. weekly same-store sales increased 1.6% year-over-year in the prior week. Bullish positioning in Macy?s options this morning suggests some traders are preparing for shares in the name to extend gains this week and perhaps through the end of the calendar year.
The bulk of the volume in Macy?s options today is in the front month calls, with more than 6,400 contracts in play at the Nov. $40 strike against open interest of 2,295 positions. Most of the $40 strike calls appear to have been purchased this morning for an average premium of $0.18 apiece, thus positioning buyers to profit should shares rally another 2% to exceed the average breakeven price of $40.18 by expiration at the end of the week.?
Traders establishing bullish positions on the stock in December expiry calls may be looking for Black Friday and the frenzied holiday shopping season to drive up traffic in stores across the country and the price of the retailer?s shares. The Dec. $41 and $42 strikes are humming with activity today, with upwards of 2,800 calls changing hands at the $41 strike against open interest of 422 contracts.
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