Mike Tarsala Bullish on ANN and LIZ

Mike Tarsala of Thomson Reuters is out with a trade report this afternoon, where he spins a bullish case for both Ann Talyor Stores Corp. ANN and Liz Claiborne Inc. LIZ. Mr. Tarsala cited options activity in the two names that hit the tape yesterday on ANN’s August $17.50 call strike and LIZ’s January 2011 $5 put. Both cases were bullish as the calls were purchased and the puts were sold. He believes that the shares are at intermediate-term bottoms and suggests buying both as a way to play recently announced better-than-expected same store sales. July comps for apparel stores were better-than-expected, according to Thompson Reuters’ Same Store Sales estimates. They rose 3.1 percent in the aggregate, versus a 2.2 percent consensus expectation. To see his video, please visit… http://link.reuters.com/buc74n