Ross Stores Inc (NASDAQ:ROST) stock is one of the best names on the S&P 500 Index (SPX) today, last seen up 6.8% to trade at $211.23, and earlier hitting a record high of $216.79. The discount retailer reported adjusted fourth-quarter earnings of $2.00 per share on $6.64 billion in revenue, both of which exceeded analyst estimates.
Telsey upgraded the stock to "outperform" from "market perform" and hiked its price target to $240 from $220. Seven other analysts hiked their price targets in response, with brokerages encouraged by the hiked annual sales forecast.
Prior to today's breakout, ROST had shed 3.9% this week already. Now, the shares are up over 55.4% year-over-year, with this week's pullback finding support at the 40-day moving average, a trendline that hasn't been breached on a closing basis since October.
Call traders are out in droves this morning. At last check, over 2,380 calls have changed hands, volume that's six times the average intraday amount. The April 180 call is the most popular, with new positions being bought to open here.
The good news for premium traders: the stock's Schaeffer's Volatility Scorecard (SVS) ranks at an elevated 83 out of 100. In other words, the equity has exceeded option traders' volatility expectations during the last year.
