Men’s Wearhouse has been swinging violently for the last year, but one investor apparently thinks that now is the time to get long.
optionMONSTER’s tracking programs detected the purchase of 4,391 August 30 calls for $2.55 and the sale of an equal number of August 26 puts for $1.70. Volume exceeded the previous open interest at each strike, indicating that these are new positions.
The trade cost $0.85 and is similar to owning shares in the men’s apparel retailer. The position carries much less risk than owning the stock but will track shares less closely as time passes and expire worthless if MW remains between the two strike prices through mid-August.
— Option Monster