Call Volume Explodes on American Eagle Outfitters (AEO)

Shares of American Eagle Outfitters AEO are popping higher this morning on buyout rumors; after touching a high of $15.57, shares have pulled back slightly, trading at $15.31. Call volume is surging on the name, with over 9,000 contracts trading in the first 30 minutes. The average daily call volume is around 3,000 contracts and AEO has not seen a high call volume day like this in the past 30 days. The heaviest action is coming on the $16.00 and $17.00 strikes in March and April. Put volume is paltry, at 162 contracts. American Eagle Outfitters, Inc. offers on-trend clothing, accessories and personal care products. It operates under the American Eagle, aerie by American Eagle, 77kids by american eagle and MARTIN+OSA brands. As of January 30, 2010, it operated 938 American Eagle Outfitters stores in the United States and Canada, 137 aerie stand-alone stores and 28 MARTIN+OSA stores.