Pre-Earnings Bulls Pounce On Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA)

Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA) will report first-quarter earnings tonight

by Alex Eppstein

Published on May 28, 2015 at 2:55 PM
Updated on Jun 24, 2020 at 10:16 AM

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) options are running wild ahead of the company's first-quarter earnings report tonight. Overall intraday volume, in fact, is at seven times the expected level.

ULTA's most active strike is the June 165 call, where traders may be purchasing new positions. These potential call buyers think the stock will rally above $165 -- and into record-high territory -- by the close on Friday, June 19, when front-month options expire.

Today's bullish bettors are simply reflecting longer-term trends witnessed at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the last two weeks at these exchanges, 4.31 calls have been bought to open for every put -- a ratio that ranks in the 96th percentile of its annual range.

This optimistic bias is understandable, considering Ulta Salon, Cosmetics & Fragrance, Inc.'s (NASDAQ:ULTA) 20% year-to-date advance to hover around $153.24. More upside could be ahead following tonight's earnings report, too. Over the past eight quarters, the stock has moved an average of 12.2% in the session adjacent to reporting -- seven of which were to the upside.

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