Tiffany (TIF) is up $4.45 to $62.95 and near session highs, even after the company posted second quarter earnings and revenues that missed Street estimates. The New York-based luxury jeweler also guided estimates lower for the full year. The stock is down 5.1 percent year-to-date after today’s move and has been underperforming. Perhaps a bad report had been discounted. For whatever reason, the stock is rallying to multi-month highs and options volume is running 6.5X the daily average. 29,000 calls and 16,000 puts so far. The top trade is a 12,700 Feb 67.5 calls at $2.73 per contract when the market was $2.74 to $2.84. Looks like an opening call writer, perhaps on the view shares are unlikely to rebound to $67.5 (an additional 7.5%) through the February expiration. The next biggest trade is a 2000-lot of Nov 67.5 calls sold at $1.12 per contract on ARCA (pcoast). Meanwhile, implied volatility in the options on TIF is down 36.5 percent to 26.5 and falling back towards the 52-week lows of 23.5 seen in mid-March.
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.