Options volume on Fifth & Pacific Cos. is nearly three times the average daily level on Tuesday morning, due in large part to upside call buying in the March expiry options. Shares in the owner of the Kate Spade family of brands are rallying amid an up day for U.S. stocks, with shares in the name up better than 2.0% at $28.16 as of 11:30 a.m. EST.
The most traded contracts are the Mar $30 and $31 strike calls, with around 500 contracts in play at each strike against small open interest levels. Time and sales data suggests one or more traders purchased most of the $30 calls at a premium of $1.30 each while the $31 calls were picked up at a premium of $1.05 apiece. Traders long the calls may profit at expiration next month in the event that shares rally 11% and 14% to top effective breakeven prices at $31.30 and $32.05. Shares in FNP last traded above $32.05 back on January 10th. Fifth & Pacific reports fourth-quarter earnings on February 25th.
