Trader Gobbles Up Call Options on Chico’s FAS, Inc. (CHS)
There was an unusually large call purchase this afternoon around 3:40pm on Chico’s FAS, Inc. (CHS). One trader is betting the farm with the purchase of more than 3,900 July $18 calls at 20 cents. There hasn’t been any news to hit the wire to explain this purchase, but we’re guessing it won’t be long before some good news hits the wires.
It looks like others are jumping on the bandwagon as there have now been over 6,500 July $18 calls bought today, against an open interest of only 338.
We love these big call buys on lesser known stocks. This trade is a clear signal that good news has leaked out to some lucky (well connected) investors. Either great monthly same store sales numbers have leaked, an upcoming analyst upgrade has leaked, or buyout talks have leaked.
Chico’s FAS, Inc. (CHS) closed the day at $16.45 up 5 cents.
Chico’s FAS, Inc. (CHS) is a clothing retailer operating names such as Chico’s, White House / Black Market, Boston Proper, and Soma Intimates. They are based out of Fort Myers, Fl.
Some upcoming catalysts would be their annual meeting being held June 26. They don’t report Q2 earnings until August 27.
Here’s their stock chart on Chicko’s FAS, Inc. (CHS)
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