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Luxury jeweler Tiffany & Co. (TIF – 40-1/4) announced on Thursday that it may repurchase up to $100 million of its stock over the next three years, extending the buyback plan under which it bought $49.9 million of its shares since November 1997. The equity is down more than one percent in reaction to this development.
The stock vaulted ahead by more than five percent yesterday, as it approaches its overhead 10-day and 20-day moving averages. These two short-term trendlines recently crossed bearishly, which can be a sign of near-term weakness. The security is also sitting just above its ascending 10-week moving average, a trendline that has offered perfect support on a weekly closing basis since mid-June.
Given that TIF remains in the midst of an intermediate-term uptrend, options players have been showing increased optimism toward the equity since August expiration. On August 18, Schaeffer's put/call open interest ratio (SOIR) on TIF stood at 1.01, which is significantly higher than its current SOIR reading of 0.16. Please visit Schaeffer's Daily Sentiment to learn more about SOIR.