Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Chico's FAS, Inc. (CHS) Rebounds, Call Buyers Respond

Chico's FAS, Inc. call volume is running at 26 times the average intraday pace

by 8/28/2014 12:13 PM
Stocks quoted in this article:

Amid unsubstantiated buyout buzz, Chico's FAS, Inc. (NYSE:CHS) is up 2.8% today to trade at $15.71, erasing a portion of Wednesday's earnings-induced plunge of 4.6%. This, despite earlier receiving a $1 price-target cut to $14 at Mizuho. Meanwhile, call volume has exploded to 26 times the typical intraday amount, and traders are targeting short-term contracts, per CHS' 30-day at-the-money implied volatility, which is up 10.1% at 32.6%.

According to Trade-Alert and data from the International Securities Exchange (ISE), the clothing designer is seeing buy-to-open activity at the October 17 call, where more than 12,000 contracts are on the tape -- easily the most of any CHS strike. More than half of this volume traded as a multi-exchange sweep of 10,003 contracts, at an average ask price of $0.29 each, or roughly $290,000 (premium paid * number of contracts * 100 shares per contract). This represents the speculator's maximum potential risk, should Chico's FAS, Inc. (NYSE:CHS) be sitting below the strike at October options expiration. Conversely, gains are theoretically unlimited, should the equity muscle north of $17.29 (strike plus premium paid) at the close on Friday, Oct. 17, when the back-month options cease trading.


Featured Brokers
Unusual Option Volume
Option Flow
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email:

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by | Data delayed 15-20 minutes unless otherwise indicated.