Retail Stock Surging on Reopening News

Calls are attracting options traders today as a result

Assistant Editor
Jun 16, 2020 at 10:16 AM
facebook twitter linkedin


The shares of Tanger Factory Outlets Centers Inc. (NYSE:SKT) are higher today, last seen up 8.4% to trade at $8.37. The outlet retailer announced that 72% of its occupied stores were open, while weekly traffic at stores that have been open for 30 days or longer has exceeded 90% of prior-year levels. Additionally, the shopping center operator, announced that it had amended its debt agreements in order to retain financial flexibility. 

SKIT hit an all-time low of $4.05 twice at the beginning of April before rallying to consolidate between the $7 and $9 levels. However, the shares' rally was stymied by their 100-day moving average. And despite an impressive 64% quarterly gain, the equity remains down 44.2% in 2020.

Meanwhile, analysts are less than optimistic about Tanger Factory Outlet Centers stock. All five in coverage rate it a "hold" or worse. Plus, SKT's 12-month consensus price target of $4.96 is a 35.7% discount to last night's close. So should the security continue to climb, a shift in analyst attention could serve as tailwinds.

The news is attracting options players, too. In just the first hour of trading, over 1,400 calls have crossed the tape, compared to only 220 puts. The most popular contract today so far is the June 9 call, running in accordance with the recent options trend. In other words, SKT's 50-day call/put volume ratio of 1.92 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 60% of readings from the past year, too, suggesting a healthier than usual appetite for long calls of late. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners