Michael Kors (KORS) Options Seller Sees a Roadblock at $60

Added 3/12/2013

As clothier Michael

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Kors Holdings Ltd (NYSE:KORS - 59.47) continues its run up the charts, one trader is looking to cash in just north of the stock's current trading position. Yesterday, one investor sold a short straddle at the May 60 strike, helping boost overall call traffic to nearly double the normal amount. In the final hour of Tuesday's trading, one investor sold 3,800 calls at the May 60 strike for $3.80 per contract on the AMEX exchange. At the exact same time, he/she sold 3,649 puts for $4.80 apiece info. According to trading floor sources, this was indeed a short straddle, or when an investor sells calls and puts at the same strike price expecting minimal movement on the stock, seeking to profit inside a band around the strike price -- in this case, $60. For the trade to be profitable, the shares have to close between the two breakeven points of $51.40 (strike minus the net credit of $8.60) and $68.60 (strike plus net credit) on the expiration date of May 17. This represents either a 13.6% drop from current levels or a 15.3% climb from the current stock price, giving the trader a fairly wide range at which he or she is profitable. The trade becomes unprofitable if the stock closes either below or above those two prices, respectively. The trader theoretically could face unlimited losses if the stock rises above the higher breakeven point, and a loss of up to $51.40 per straddle, in the unlikely event that the stock drops to $0. Given KORS' current trajectory, a loss on the call side would be more likely. KORS is up 16.1% so far this year, boosted earlier this month by a stellar earnings report -- and up roughly 37% year over year. It has also beaten the S&P 500 Index (SPX) by nearly 13 percentage points over the last two months. And with a Relative Strength Index (RSI) of 54, KORS is not yet close to "overbought" territory, and has more room to run. In the option pits, sentiment is definitely bullish toward KORS. The equity's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 3.43, meaning more than three times as many calls are being purchased to open as puts. In addition, that stands in the 82nd percentile of similar readings taken in the last year, meaning that bullish sentiment is even stronger than normal lately and Michael Kors Outlet Store nearing an annual high.

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lub hosts Winter Bash for fun, fundraising

Added 3/12/2013

The Mount Laurel Rotary Club is hosting info the fourth annual event from 7 to 11 p.m. Friday at Sensational Host on Route 73 in Maple Shade. The cost of admission is $35 and includes a buffet dinner, dessert, dancing, auctions and other entertainment. Beer, wine and soft drinks also come with a ticket

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. “It’s a fun format that’s not your typical beef and beer,” Rotary president Tim Carleton said.Diners will be entertained by a stand-up comedian and disc jockey. Various gift baskets and individual items will be auctioned, including tickets for the area’s major sports teams, a Michael Kors handbag and watch, and an overnight stay in Philadelphia with breakfast .“There will be a couple of vacation options,” Carleton said.The Winter Bash is the club’s only fundraising event for the fiscal year, Rotary members said. Profits will support scholarships presented annually to students at Lenape High School in Medford and Burlington County College, as well as other community outreach Michael Kors Outlet programs.

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