$GES calls double in value overnight

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It took just one day for option traders to score again with bullish positions in Guess.

On Friday, Investitute’s market scanners cited the purchase of 5,000 September $15 calls for $0.70 as part of a bullish roll with shares at $15.47. Open interest in the strike was only 411 contracts before the session began, showing that this was fresh buying.

Today those calls sold for $1.25, nearly doubling in value one session later. The stock was up less than 5 percent at the same time, underscoring the kind of leverage that can be achieved through options. It was the name’s second winning upside trade posted on Investitute in the last three days.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

GES rose 3.83 percent to close at $16.26 today. The mall retailer crushed earnings estimates and raised guidance on Wednesday evening.

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Mike Yamamoto | Investitute

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