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Bullish betting has picked up on J C Penney Company Inc (JCP) after a price-target hike
J C Penney Company Inc (NYSE:JCP) gapped higher out of the gate, thanks to a price-target lift at Piper Jaffray to $14, representing a 69% premium to current levels -- and territory not charted since September 2013. The development hasn't been lost on option traders, as 15,027 calls have changed hands thus far, a figure higher than 95% of readings from the past year, and five times the expected intraday volume.
Between the weekly 4/2 and the April series, the 8-strike call is popular today. With JCP's 5.9% lead to trade at $8.29, it's possible some of the action here is profit-taking. Elsewhere, the January 2016 10-strike call has seen apparent buy-to-open action, as traders bet on the shares to climb atop the round-number $10 level by January expiration.
This is the second day in a row calls have been in demand in JCP's options pits. Now, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.73 ranks higher than 92% of all similar readings from the past year.
J C Penney Company Inc (NYSE:JCP) has been on a roll of late. The shares have added nearly 28% in 2015, and have surpassed their average 12-month price target of $8.15 with today's gains.