Bulls hungry for Domino’s Pizza, Inc. (DPZ) options as shares rise to all-time high

Nordstrom, Inc. (NYSE:JWN) – 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, Inc. (NYSE:JWN)’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, Inc. (NYSE:JWN) 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.

Caitlin Duffy

Equity Options Analyst

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