Under Armour calls look for positive earnings

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Under Armour attracted a rush of bullish earnings plays at the end of today’s trading.

Investitute’s tracking systems detected the purchase of more than 4,400 Weekly $20 calls that expire on April 28. This was clearly fresh buying, as open interest in the strike was only 500 contracts before the day began.

The calls were purchased for 0.50 to 0.66, with most of the volume accumulated in the final hour of the session. Shares were trading around $19.09 at the time.

Long calls lock in the price where the stock can be purchased, gaining with a rally and providing leverage to the underlying shares. But the contracts can quickly lose value if the stock stalls or pulls back. Today’s calls are looking for the stock to rise above $20.50 to $20.66 by expiration.

UAA fell 0.26 percent on the day to close at $19.21. It had traded near $44 as recently as last August but gapped lower after its last two earnings reports.

The athetic-apparel retailer is scheduled to announce its next quarterly results before the market opens on April 27, one day before today’s long calls expire.

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Mike Yamamoto

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