Call Spread Purchased on Abercrombie & Fitch (ANF)

Shares of Abercrombie & Fitch Co. ANF are lower on the session by 1.21%, currently trading at $35.90. The stock has been drifting lower over the past three months and looks like it has found support at the $35 handle. Options trading is favoring the call side today, most of the action coming from one trade. A 1x2 call spread was purchased; the January 2011 $55 call was purchased 3,500 times for $0.65 and the January $65 call was sold 7,000 times for $0.20; net debit on the transaction is $0.25. Call volume is running at 2.31x times the daily average. Abercrombie & Fitch Co. through its subsidiaries, is a specialty retailer that operates stores and direct-to-consumer operations selling casual sportswear apparel