Call Options Snapped Up on American Eagle Outfitters (AEO)

A good sized bet was just placed on American Eagle Outfitters (AEO) with the purchase of over 3,000 August $12 calls just after 1:30 pm.  This was an opening trade, and some 2 times usual volume in AEO options.

American Eagle Outfitters (AEO) is currently trading up 15 cents at $11.77 this afternoon, after rebounding from it’s morning lows of around $11.50.

There is no clear reason for the largish options be on AEO today, and short interest has been rising on the stock lately.  It could be that a new analyst upgrade has been leaked and may be announced in the coming days.  Yesterday, Zacks upgraded AEO from underperform to neutral, with a $12 price target.  The coming upgrade may be from a larger analyst and may have a higher price target.

American Eagle Outfitters (AEO) doesn’t report earnings until August 18, 2014, but it could be that monthly store sales have leaked?

We’ll have to watch this closely for any new announcements from AEO.

Here’s the current 5 day stock chart on American Eagle Outfitters (AEO):