April 20, 2010 -
PRLog -- Hollister (Hollister Co.) Brand, generally referred to as "Hollister", or simply HCO, is the U.S. high-end casual clothing brand A & F (Abercrombie & Fitch), Vice-line unit of a brand, Hollister for 15 to 18-year-old boys girls, and strive to reflect the surfing beaches of Southern California style, the relative A & F is more inexpensive material, the corresponding price of Hollister are more A & F lower.Short straddle plays initiated on clothing company, Abercrombie & Fitch at http://www.abercrombieofficial.org/
, suggests investors expect ANF-shares to remain range-bound and anticipate lower volatility in the price of the underlying stock through March expiration. On Friday, Abercrombie & Fitch Co.tagged a new annual high of $50.10. Following this news, option shoppers flocked to the clothier, sending volume to 37,000 contracts -- nearly triple Abercrombie and fitch (http://www.abercrombieofficial.org/)
's usual daily volume of roughly 13,000. Puts were especially popular, with roughly 22,000 contracts traded. Most popular was the soon-to-expire April 48 put, which had volume of 4,817 contracts change hands -- more than half at the ask price, suggesting they were bought. Over the weekend, open interest increased by 3,463 positions, to 4,381, confirming that new contracts were added at this strike. By buying to open the April 48 put, skeptical traders are betting that ANF will fall below the $48 level by this Friday's close --when April-dated options expire. Option players have some reason to be skeptical of ANF; the stock's Relative Strength Index (RSI) is perched at 70 -- flirting with "overbought" territory. Furthermore, ANF on the website
http://www.abercrombieofficial.org/ hit yet another annual acme of $50.77, as analysts at Caris, Barclays, and Jefferies raised their price targets on the retailer. The stock has been guided higher along support of its 10-week and 20-week moving averages, which completed a bullish cross at the end of March.. What's more, with nearly 13% of the stock's float tied up in short interest, there is ample sideline cash available to help continue ANF's(
http://www.abercrombieofficial.org/mens-abercrombie-fitch...) recent rally. Shares of the teen and ‘tween haven for micro-mini jean skirts and pre-destroyed t-shirts rallied 1% to $35.72 today. However, straddle-sellers apparently foresee little movement for shares in either direction from the current value. Investors sold approximately 6,600 puts at the March $35 strike for an average premium of $1.44 apiece in combination with the sale of 6,600 calls at the same strike for $1.46 each. The average gross premium pocketed on the transaction amounts to $2.90 per contract. Traders retain the full premium received today if Abercrombie’
s shares settle at $35.00 at expiration. Investors are vulnerable to losses, however, in the event that shares trade outside of the effective breakeven points. Losses accumulate should shares rally above the upper breakeven price of $37.90, or if the stock falls below the lower breakeven point at $32.10, ahead of expiration day in March.
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