Calls Purchased on Men’s Warehouse (MW)

Shares of Men’s Warehouse Inc.

are higher on the session by 15.96%, currently trading at $21.65. The stock has been falling sharply throughout May and June, but is rocketing higher today on news that the company’s Q1 profit surged. Options traders are picking up calls on the name; the June $22.50 strike was purchased on the offer 1,200 times today. Open interest on the strike is 2,467 contracts. Call volume is running at 7.05x the daily average. It is possible that these calls were bought as hedges to short shares. The Men's Wearhouse, Inc. is a specialty retailer of men's suits and a provider of tuxedo rental products in the United States and Canada. At January 30, 2010, the Company operated 1,259 retail stores, with 1,142 stores in the United States and 117 stores in Canada.