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Gap Shares Could Move This Much After Q4 Earnings

Published 03/03/2022, 15:09
Updated 03/03/2022, 15:40
© Reuters.  Gap Shares Could Move This Much After Q4 Earnings
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Gap Inc (NYSE: NYSE:GPS) reports earnings Thursday after the bell. Shares of Gap rose 5.43% to close Wednesday’s trading at $14.57.

On CNBC's "Options Action," Tony Zhang said the stock traded more than 4.5 times its average daily volumes on Wednesday.

“The options market is implying a huge move of 13.7% going into this earnings event,” Zhang mentioned.

See Also: Earnings Preview For Gap

There was a buyer of 2,011 of the March 15 puts, selling the same number of contracts of the June 14 puts for a net credit of 30 cents per contract, he added.

“This is really an extension of what is a neutral to bullish view here on Gap and obligating them to purchase $2.75 million worth of Gap shares if the stock is below $14 by that June expiration,” Zhang said.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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