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Option Brief: As Michael Kors Holdings Ltd (NYSE:KORS) encroaches upon another new all-time high, one confident options trader rolled out his expiring bullish bet to extend its life. Earlier today, symmetrical blocks of 1,100 contracts traded at the deep-in-the-money November and December 50-strike calls. The former changed hands closer to the bid price, at $32.26, while the latter crossed near the ask price at $32.29. With the stock marginally higher this afternoon to trade at $82.21, these strikes carry more than $30 in intrinsic value.
Per data from the International Securities Exchange (ISE), it appears as though the front-month options were sold to close mere hours before they expired at today's close. The December options, meanwhile, were bought to open.
The November-dated calls may have been originally opened in mid-October for $22.90 apiece, meaning they were closed for a profit of $9.36 per contract, or nearly 41%. Today's roll out expresses the hope that KORS' advance on new highs continues over the next month.
Despite the stock's impressive price action -- it has gained more than 61% in 2013 -- today's call activity is a break from recent trends. During the last 50 trading days at the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), calls and puts have traded nearly at parity. The corresponding put/call volume ratio of 0.98 for Michael Kors Holdings Ltd (NYSE:KORS) ranks just 4 percentage points shy of a bearish annual peak.