Tapestry Inc (NYSE:TPR) stock was last seen up 3.7% at $134.68, an earlier surged to a record high of $142.22, after the company announced better-than-expected fiscal second-quarter results. Coach's quarterly revenue jumped 25% with help from Tabby handbags, which have become popular amongst Gen-Z customers, leading the global fashion conglomerate to lift its full-year forecast.
Year over year, TPR is up 84% after tacking on 36% in just the last three months. Prior to today's bull gap, the stock found underlying support at the $125 level and 50-day moving average.
Options bulls are targeting Tapestry stock today, with calls being picked up at seven times the average intraday pace. The June 60 call is the most popular, followed by the February 130 call. TPR has tended to exceed options traders' volatility expectations over the past year, per its Schaeffer's Volatility Scorecard (SVS) of 94 out of 100.
Short interest has been building despite the stock's outperformance, and now represents 6.5% of its available float, or nearly five days' worth of pent-up buying power. With these shorts now underwater, some of today's bounce could be attributed to short covering.
