ANF fell hard (almost 17%) last Thursday as the company announced weak guidance. That has left out of the money calls with good volatility and hence juicy options premium. We are considering selling out of the money calls with January expiration in the name later today.
On the weekly chart note the trading range for this year…the stock is now again at the bottom of this range.
on the daily chart note the big gap down from Thursday. After such large gaps stocks rarely fill more than half much less the entire gap anytime soon. That allows the opportunity to sell out of the money calls.
