Call Spread Sold in Gap

Shares of Gap Stores GPS are higher on the session by 0.97% to $24.06, but one trader is selling out of their call spreads in the name. The May $25/26 call spread was sold 12,000 times for an average price of $0.125 a short while ago. Open interest on both of those strikes exceeds today’s volume, which further supports the notion of someone closing a position. Gap Stores is struggling to hold the 50-day moving average; it remains to be seen if there is more room on the upside for the name, the above options trade doesn’t think so. Gap is scheduled to report earnings after the bell on May 21ST.