It seems every week there is a stock in the retail sector moving 15%+. Fossil (FOSL), Deckers Outdoor Corp (DECK), and JC Penney (JCP) all saw their shares ripped to shreds on disappointing earnings and lower outlooks. Is the economy really starting to show signs of cracking? Maybe analysts had the bar set to high? I am sure its some of those reasons and more, but there are companies that should continue to buck the trend. Ross Stores, Inc (ROST) looks like one of them. Yes, the stock is up nearly 100% yoy, but who cares. Follow the momentum.
The market speaks, sometimes you just need to listen. Take a look at the open interest on the calls and puts expiring in 2 days:
Open Interest on ROST May calls and puts : CALLS : 33,500 PUTS: 13,847
We are betting on the upside tomorrow as Ross Stores, Inc (ROST) reports earnings before the opening.
Disclosure: We currently hold $65 May calls.