I Love Following Order Flow

Hey friend!

Being married to Big Blonde Hair has its upside, namely I know all about what is working in retail.  

This is part of the reason I love following order flow in some of the retail names.

If you haven’t heard of Tapestry Inc, you have certainly heard of their brands:  Coach,  Kate Spade,  Stuart Weitzman are among its brands.

I have, in the past bought Stuart Weitzman shoes and boots for many women in my life,  normally, when BBH points out a sharp pair that she spots.

Speaking of Sharp Pairs, there are a couple of strikes in Tapestry that are garnering a lot of call buying.

So far on the day, a customer has bought about 5000 of the TPR September 15 calls, these have mostly traded untied (meaning no stock).  The customer started at $.60 and paid up to $.65.

In addition, and like because of the 15s, customers have bought almost 1500 of the Sep 15.5 calls.

Considering on a normal day TPR only trades about 3000 contracts,  these orders are not to be ignored.

These calls expire next week, making them extremely short dated.  Based on the delta expressed in the trade,  I would gather the purchaser is looking for a strong move in the next few days.

TPR is already up about $.80 on the day,  so the customer seems to be smart and (currently) happy.

I do not think piggy backing this guy (or girl) is a bad idea.  However, I would not be buying in September.

The October 9th contract has 15.5 calls that cost less than $1.00,  relative to paying $.50 for the September 15.5 calls, I think these are a value.

Your Only Option,

Mark

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