Tuesday, April 4th, 2017

ANN and SCSS call option activity lead stock price move


www.OptionSIZZLE.com Unusual option activity often leads price movements in the stock. In last nights video I go over the unusual option call buying ahead of Ann Taylor Stores Corp (ANN) earnings with buyers buying large blocks of the March 15 calls at .40 cents. (ANN) reported better than expected earnings, which shot the stock price up 17% on the day, but those March 15 calls closed at $1.45*$1.65, over 200% in just a few hours. In our Elite chat room, traders get real time updates on stocks seeing unusual option activity as it hits my systems. Yesterday morning I picked up early call buying in Select Comfort (SCSS) in the Feb 7.50 calls, which buyers were hitting the offer at .30 cents. When I saw prices breaking out on the daily chart and the activity continuing to build I took a day trade in the stock which closed up 10% on the day, but those Feb 7.50 calls closed $.50*.$55, over 75% in just a few hours.

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