Monday, March 7, 2011

Target (TGT), Staples (SPLS) Call Options Rise

Target Corp. (NYSE:TGT) and Staples Inc. (NASDAQ:SPLS) have been the recipients of a growing amount of bullish call options, as traders are betting the retailers will come out of their duldrums by the fall season.

Steve Claussen, chief investment strategist at OptionsHouse LLC., said, "The trade is definitely super bullish. He hits a home run if the calls are at the money in October."

Longer-term options bulls also staked out Framingham, Mass.-based office-supply company Staples for a similar rebound. Volume in Staples options reached the highest level in two years as traders sought out bullish calls and sold bearish puts that convey the right to sell stock.

Both companies' shares have sagged of late. Staples, which missed fiscal fourth-quarter estimates Monday, is down more than 10% in 2011; Target shares have lost 14% this year.

Staples closed Friday at $20.43, down $0.62, or 2.95 percent. Target closed at $51.65, down $0.43, or 0.83 percent.




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