Gap reported better-than-expected third-quarter results
Gap Inc (NYSE:GAP) stock is surging today, up 8.8% at $25.05 at last check, after the company posted better-than-expected third-quarter results and lifted its full-year forecast. The retailer saw a surprise sales surge after its viral denim ad with girl group Katseye, and CEO Richard Dickson touted a "great start" to the holiday shopping season.
On the charts, today's pop has GAP breaking into positive territory for 2025, though familiar resistance at the $25 level appears to be keeping a cap on gains. The stock has risen above all notable moving averages between the 20- and 320-day trendlines, with recent support at the 60-day.
Options traders are chiming in after the event, with 37,000 calls and 13,000 puts exchanged so far today -- four times the overall options volume typically seen at this point. The November 25 call is the most popular, with new positions being opened there.
Some of today's price action could be attributed to short covering, as short interest represents 9.8% of the stock's available float. It would take shorts over two days to cover, at GAP's average pace of trading.