Market Overview

Dan Nathan Sees Unusual Options Activity In Michael Kors: 10% Move Coming?

Share:
Related KORS
Where There's Smoke, There's Not Always Fire: Be Careful With These 10 Rumor Mill Stocks
Santa Leaves Lump Of Coal In Macy's Stocking
15 Stocks For 2017 And Beyond (Seeking Alpha)

On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in Michael Kors Holdings Ltd (NYSE: KORS) ahead of earnings results. The company is going to report earnings on Wednesday and the options market is implying a 10 percent move. In the last four earnings events, the stock moved 16 percent on average.

The options volume was 6 times higher than the average daily options volume and there was one trade that caught Nathan's attention. A trader bought 15,000 contracts of the June 46 calls for $1.05. The trade breaks even at $47.05 or 10 percent higher from the closing price on Tuesday. Nathan explained that Michael Kors traded sharply lower recently and he sees the trade as a contrarian way to play into the earnings results.

Posted-In: Dan Nathan Options ActionCNBC Options Markets Media

 

Related Articles (KORS)

View Comments and Join the Discussion!