Market Overview

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

Related KORS
Q4 13F Roundup: How Buffett, Einhorn, Loeb, And Others Adjusted Their Portfolio
Mid-Afternoon Market Update: Dow Surges Over 200 Points; MACOM Technology Shares Drop After Q1 Results

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!