DPZ - Domino's Pizza, Inc. – Shares
in Domino's are bucking the trend today, rising as much as 2.2% to an
all-time high of $43.74 on Thursday morning, even as most stocks decline
on weaker-than-expected consumer confidence data for the month of
December and the failure of U.S. lawmakers to arrive at a budget
compromise. Options traders hungry for fresh highs in Domino's Pizza
shares in the first few months of the New Year snapped up call options
on the name today. Bulls picked up around 100 in-the-money calls at the
Jan. $43 strike for an average premium of $1.11 apiece, and purchased 70
of the higher Jan. $44 strike calls at an average premium of $0.60
each. Like-minded strategists looked to the Mar. $45 strike calls as
well, buying 150 of those contracts at an average premium of $1.65
a-pop. Traders long the $45 strike calls stand ready to profit at
expiration in March 2013 should shares in DPZ rally another 6.7% to top a
new record high of $46.65 by expiration. The stock has gained 40%
during the prior six month period. Domino's Pizza is scheduled to report
fourth-quarter earnings at the end of February, several weeks prior to
March options expiration.
JPM - JPMorgan Chase & Co. – Options
traders positioning for shares in JPMorgan Chase & Co. to rally
during the first week of the New Year snapped up weekly calls on the
largest U.S. bank by total assets this morning. Shares in JPM are down
1.8% this morning at $43.17, moving lower along with the broader market
on disappointing consumer confidence data and concern the U.S. may go
over the fiscal cliff. Traders anticipating a strong start to the New
Year for shares in JPMorgan appear to have purchased more than 1,000
calls at the Jan. 04 '13 $44 strike for an average premium of $0.52
apiece during the first 20 minutes of the trading session today. Call
buyers stand ready to profit at expiration next week should shares in
JPM reverse course and gain 3.1% to surpass the average breakeven price
of $44.52. JPMorgan Chase & Co. is scheduled to report
fourth-quarter earnings ahead of the opening bell on January 16th.
JWN - Nordstrom, Inc. – Shares in
the department store operator fell as much as 2.9% the day after
Christmas after data showed holiday sales were the worst since 2008, and
as investors brace for the U.S. to potentially go over the fiscal
cliff. Nordstrom's shares reversed some of those losses on Thursday
morning, but have since returned to negative territory, down 0.30% at
$51.25 as of midday in New York trading. The stock has dropped 7.5%
during the past four weeks, but some options traders are positioning for
the price of the underlying to kick of 2013 in rally mode. Bullish
players picked up in-the-money calls on the name this morning, buying
some 1,150 calls at the Jan. $49 strike for an average premium of $3.06
apiece, and purchasing roughly 1,500 calls at the higher Jan. $50 strike
for an average premium of $2.39 each. Call buyers stand ready to profit
at January expiration should shares in Nordstrom climb 1.6% and 2.2%
over the current price of $51.25 to top average breakeven points at
$52.06 and $52.39, respectively.