Saks Incorporated (SKS)

[MWM]

Saks, Inc. (SKS) – Shares of the operator of luxury fashion retailer Saks Fifth Avenue attained a new 52-week high of $9.57 yesterday after Saks was raised to ‘overweight’ from ‘neutral’ and given a 9-month target share price of $11.00 at JPMorgan. Saks’ shares surrendered much of the prior day’s rally to close at $8.96, but recovered partially today to stand 1.55% higher to $9.10. Investors initiated bullish positions on the clothing and accessories retailer by picking up call options in the April contract. Optimistic traders expecting continued bullish movement in the price of the underlying stock bought 3,000 calls at the April $10 strike for a premium of $0.15 apiece. Call-buyers profit if Saks’ shares increase 11.5% over the current price to breach the effective breakeven point at $10.15 by expiration day next month.