Collective Brands (PSS) is up 55 cents to $21 on increasing volume of 2.8 million shares and call options on the retailer are busy as well. 15,000 calls and 2,125 puts traded so far. Jun 22 calls are the most actives, with 3,130 traded and 1,700 contracts were sold-to-open today on ISE, according to ISEE data. Beyond that, most of the flow is in May calls with strikes ranging from 19 to 23, but Jun 21 and Sep 20 calls are seeing interest as well. The action seems to include a mix of buying and selling in smaller lots and 30-day ATM implied volatility is ticking 1.5 percent higher to 37.5. Increased volume in PSS comes two days after the WSJ reported that the company might be broken up by bidders. The stock is now up 9.3 percent since Monday and at its best levels in almost a year.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.