Puts Rolled in Aeropostale

Shares of teen retailer Aeropostale (NYSE: ARO) are trading markedly higher today to $29.80; this comes after a drop in the stock yesterday. Aeropostale has held the $29.00 level a number of times and run higher from there. As for options action in the name, I am seeing a roll of puts in the may contract where the May $29 put was sold and the $28 put was purchased. The open interest on the $29 line is above volume, indicating that, more than likely, those options were closed out and reopened on the $28 line, which has little open interest.

Aeropostale has been one of the stars of the retail space, delivering month after month of increased comp store sales. I am bullish on the name and would buy it here with a tight stop below $29.00.