URBN, EWI Options – Unusual Trading Activity – August 30, 2013

| August 30, 2013 | 0 Comments

Unusual Trading VolumeThis week we’re taking a look at unusual options trading activity in Urban Outfitters (URBN) and iShares MSCI Italy Index (EWI).

As many of you know, unusual options volume can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term.

This is something professional options traders pay a lot of attention to, and for good reason… Unusual options activity can “tip off” big moves in a stock, either up or down.

So let’s take a look at some ‘interesting’ activity that caught our eye this week:

Urban Outfitters (URBN)

A large block of calls traded this week in apparel stores operator, URBN.

URBN is currently trading for $42.49 per share. The share price is 24% above the 52-week low of $34.38 and 5% below the 52-week high of $44.96.

One trader purchased the September 43 calls 5,000 times for $1.00. That means URBN would need to close over $44 for this trade to be profitable at September expiration, or right at the 52-week high.

The call purchase could be a part of a more complex strategy tied to stock. But on the surface, it’s a straight out bullish trade on URBN.

iShares MSCI Italy Index (EWI)

At least one strategist believes Italian stocks are going higher by March of next year.

EWI, an ETF tracking Italian stocks, is currently trading for $13.20. The shares, which have traded in a narrow range, are up 19% from the 52-week low of $11.13 and are 8% below the 52-week high of $14.34.

This week’s trade saw 4,500 December 15 calls closed for $0.13 while 3,250 March 15 calls were bought for $0.32. This action suggests the trader is rolling his or her position out three months further.

Italian stocks seem to have bottomed earlier this year and could be headed higher with the European economy slowly recovering. Apparently, however, the strategist feels it will take just a bit longer for the Italian market to break out to new highs.

More Options Ideas…

That wraps up this week’s unusual options trading and volume…

Keep in mind, there’s a lot more unusual options activity going on than what we discuss here.

We just try to bring you what we feel are the most significant ones– and the ones you might actually be able to make some money on!

So keep an eye on your email inbox… we have a lot more options trading ideas coming your way!

Yours in Profit,

Gordon Lewis


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Category: Unusual Options Trading Activity

About the Author ()

Gordon Lewis is the Chief Investment Strategist and editor for the popular daily newsletter – Options Trading Research. He’s also editor of our dynamic theme-based options trading service, Advanced Options Adviser, and one of the key analysts behind the highly successful Options Trading Wire.