NEW YORK -- Retail has been a major theme of late, and Thursday the bulls got footloose with shoe seller DSW ( DSW) .
OptionMonster's Heat Seeker system detected the purchase of about 3,200 December 30 calls, most of which priced for $2.30 to $2.60. Volume was almost triple the previous open interest in the strike, which indicates that new positions were initiated.
Long calls lock in the price where investors can buy stock, allowing them to play for a rally with much less cost than owning shares directly. The contracts can also generate significant leverage if the stock moves in the right direction.
DSW rose 1.62% to $31.94 on Thursday. It gapped higher on a strong earnings report in August and has been consolidating below its 200-day moving average since. The next set of quarterly numbers is due on Nov. 25.
Overall option volume in the name was 10 times greater than average Thursday, with calls accounting for a bullish 85% of the total.
By David Russell of OptionMonster
Russell has no positions in DSW.