Huge Call Purchase in Gap Stores

Retail sales numbers have been positive for many months now almost across the board and Gap Stores (NYSE: GPS) is no different. The stock has reflected these better than expected numbers; it is currently trading just off of a new 52-week high. The stock does look like it is a little bit over bought here and some insiders are getting rid of some shares, but the bull trades continue to emerge.

I am seeing Gap Stores April $24 calls purchased 22,000 times on the offer for $0.30. This action is significantly above open interest on the line of just 21 contracts, indicating new and substantially bullish positioning. The $24 calls in June were also active this morning with that majority being purchases. There was no stock volume large enough to think this was anything but a pure options play.