Traders look to Tumi Holdings Inc (TUMI) puts as shares edge higher

Northstar Realty Finance Corp. (NYSE:NRF) – Shares in real estate finance company, Northstar Realty Finance Corp. (NYSE:NRF), increased as much as 1.1% to a fresh four-year high of $7.45, bucking the broader trend today as most U.S. equities take a breather after last week’s strong start-of-year performance. Shares in Northstar Realty Finance Corp. (NYSE:NRF) are up nearly 9% since last Monday, contributing to the nearly 500% upside move off the stock’s March 2009 low of $1.25. Options traders anticipating further gains in the stock during the next couple of months appear to be snapping up call options in the March expiry. The Mar. $7.5 strike calls attracted the heaviest volume, with some 3,700 contracts in play versus open interest of 751 positions. It looks like the bulk of the upside call options were purchased at a premium of $0.20 apiece in the first half of the session. Call buyers profit at expiration as long as shares in Northstar Realty Finance Corp. (NYSE:NRF) rally another 4% over the current price of $7.40 to top the breakeven price of $7.70. NRF last traded above $7.70 back in September 2008.

Caitlin Duffy

Equity Options Analyst

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