Bulls Looking for Tiffany to Shine

By Chris McKhann of OptionMonster
 
NEW YORK -- Tiffany (TIF) is looking to break through resistance, and the bulls were betting on a quick move last week.
 
OptionMonster's tracking systems detected a big trade in the Weekly 90 calls that expire at the end of this week, with an investor buying 4,300 of the contracts for $2.32 on Friday. The trader also sold an equal number of Weekly 95s for 58 cents, resulting in a net cost of $1.74.
 
The vertical spread stands to make $3.26 if the luxury retailer can climb above $95 by the end of the week. OptionMonster founders Jon and Pete Najarian highlighted a similar bullish trade in our Advantage Point newsletter last month.
 
Earnings come out Wednesday morning, which could provide a catalyst for the move. Tiffany shares rose 2.62% to $90.48 on Friday and have been finding support along their 200-day moving average.
 
Overall option volume in Tiffany was 11 times greater than average in the session, with calls accounting for a bullish 84% of the total.
 
McKhann has no positions in TIF.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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