Tiffany draws bullish earnings play

optionMONSTER

A short-term trade is apparently looking for a strong earnings report from Tiffany tomorrow morning.

A trader bought 5,000 Weekly 81 calls for $2.55 and sold 10,000 Weekly 86 calls for their bid price of $0.65 on Friday, according to optionMONSTER's Heat Seeker tracking system. The previous open interest at both strikes was less than 100.

This call ratio spread cost the trader $1.25, which is the maximum risk if TIF remains below $81 by expiration at the end of this week. The maximum gain would come with shares at $86. (See our Education section)

TIF was down 0.52 percent on Friday to close the week at $81.08. It hit a two-year high of $83.48 on Monday.

More than 22,000 TIF options traded in total, compared to a daily average of 1,427.


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