Unusual Options Activity: 1-800-FLOWERS.COM (FLWS)

Online floral delivery company 1-800-FLOWERS.COM (FLWS) is down 4 percent over the past year. One trader sees shares trending higher in the coming weeks.

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  • That’s based on the January 19 $10 calls. With 45 days until expiration, 5,094 contracts traded compared to a prior open interest of 113, for a 45-fold rise in volume on the trade. The buyer of the calls paid $0.45 to make the bullish bet.

    FLWS recently traded just over $9, so shares would need to rise about $1, or just under 10 percent, for the option to move in-the-money.

    The strike price is still well under the stock’s 52-week high of $13.29. Shares hit their 52-week low in September and have been trending higher since then.

    Operationally, the retailer has struggled. Revenue is down 11 percent over the past year, but the fourth-quarter retail spending trends may lead to strong performance in the coming weeks. Holiday gift spending could lead to a strong quarter that pushes shares higher.

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  • Action to take: Investors looking to trade momentum may like shares here for further upside in the coming weeks.

    For traders, FLWS is in an uptrend and can likely head higher. The January $10 calls are a short-term trade that can potentially see mid-double-digit gains on a further trend higher this holiday season.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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