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Retail Stock Surging on Reopening News

Calls are attracting options traders today as a result

Deputy Editor
Jun 16, 2020 at 10:16 AM
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The shares of Tanger Factory Outlets Centers Inc. (NYSE:SKT) are higher today, last seen up 8.4% to trade at $8.37. The outlet retailer announced that 72% of its occupied stores were open, while weekly traffic at stores that have been open for 30 days or longer has exceeded 90% of prior-year levels. Additionally, the shopping center operator, announced that it had amended its debt agreements in order to retain financial flexibility. 

SKIT hit an all-time low of $4.05 twice at the beginning of April before rallying to consolidate between the $7 and $9 levels. However, the shares' rally was stymied by their 100-day moving average. And despite an impressive 64% quarterly gain, the equity remains down 44.2% in 2020.

Meanwhile, analysts are less than optimistic about Tanger Factory Outlet Centers stock. All five in coverage rate it a "hold" or worse. Plus, SKT's 12-month consensus price target of $4.96 is a 35.7% discount to last night's close. So should the security continue to climb, a shift in analyst attention could serve as tailwinds.

The news is attracting options players, too. In just the first hour of trading, over 1,400 calls have crossed the tape, compared to only 220 puts. The most popular contract today so far is the June 9 call, running in accordance with the recent options trend. In other words, SKT's 50-day call/put volume ratio of 1.92 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 60% of readings from the past year, too, suggesting a healthier than usual appetite for long calls of late. 

 
 

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