Alliance Data (ADS) shares crept 1.7% higher Wednesday and are eyeing a possible gap fill from current levels of $61.84 to near $67. Calls traded 2X average volume with a buyer of 2,000 January $65 calls at the $1.30 offer accounting for most of the days volume, and a buyer of the January $65/70 put back-spread for 300X600 contracts, which may also be a roll of 600 short puts to 300 short puts. Shares of the consulting and credit services firm trade 10X forward earnings and 25.5X cash flow with a substantial short float of 27%, 10.5 days to cover, which gives me some conviction that the gap may be filled the longer shares trade in this range. 70% of business comes from credit cards, consumer lending, so ADS is a mover on all consumer credit data. Michael Orkin has been shorting the stock since the $30 level and has been wrong the entire way up.