Coach handbags may have been popular holiday gifts in December, but Coach stock continues to see its fair share of fans even into the new year. Tuesday afternoon, the January 2013 55-strike calls in Coach saw unusual activity, as more than 10,000 contracts changed hands.
Shortly after 1:00 p.m. Eastern Time, two blocks of about 5,340 each changed hands at this Coach LEAPS strike. One block traded for $9.70 and another traded for $9.60. A total of $10.3 million was spent on these transactions (average purchase price of $9.65 times 10,680 times 100). It appears as though these out-of-the-money call LEAPS were bought to open.
While there is no intrinsic value in these calls, there is ample time value as they do not expire for nearly 750 trading days. Delta for these calls currently stands at 56. For every $1 move higher or lower in the stock, the calls will gain or lose 56 cents. (more…)
An investor who may be anticipating a slew of robin’s-egg-blue boxes under various loved ones’ trees this holiday season could be enhancing and extending his bullish trade in Tiffany & Co. (NYSE:TIF). At least that’s what some recent option activity could be indicating.
Video-game developer and distributor Electronic Arts (NASDAQ:ERTS) followed the rest of the market lower on Tuesday, dipping 3.6% to approach a six-month low by the closing bell. In the past year, the stock has underperformed the broader market indices, giving back about 14%.
Chubb (NYSE:CB) is a U.S.-based insurance company offering both commercial and personal services. News has been sparse on the firm since its July 22 positive earnings surprise. The stock itself, however, has been quietly strolling higher, up more than 16% since early July to hit a new 52-week high in Monday’s trading.
