Paper bought 4500 CALD June 5 Calls for $.60 (1125 times usual volume) when stock was trading $4.66
Paper bought 2337 ARRS May 17.5 Calls for $.70 (8.5 times usual volume) when stock was trading $16.88
Paper bought 1632 DGI Feb 27.5 Calls for $.45 (5.0 times usual volume) when stock was trading $27.81
Paper bought 350 HNR Feb 10 Calls for $.20 (1.8 times usual volume) when stock was trading $9.44
Paper bought 19,450 DG Aug 50 Calls for $1.15 (7.0 times usual volume) when stock was trading $43.91

Paper bought 175 LNCO May 45 Puts for $1.50 (2.8 times usual volume) when stock was trading $37.18
Paper bought 845 LYV May 11 Puts (7.5 times usual volume) when stock was trading $10.61
Paper bought 3850 DNKN March 35 Puts for $.45 (3.0 times usual volume) when stock was trading $36.94
Paper bought 1270 ALR May 19 Puts (5.4 times usual volume) when stock was trading $.725
Paper bought 5000 LINE Jan 2014 30 Puts for $1.45 (2.9 times usual volume) when stock was trading $36.44 

Paper sold 16,514 MPEL March 21-23 Bear Call Spread for $.55 (4.2 times usual volume) when stock was trading $20.95
Paper bought 9000 AZN July 50 Calls for $.65 (7.6 times usual volume) when stock was trading $46.20
Paper bought 4500 CALD June 5 Calls for $.60 (1125 times usual volume) when stock was trading $4.66
Paper bought 7000 DF June 16 Calls and Sold June 12 Puts for $1.70 Debit (16.3 times usual volume) when stock was trading $16.93
Paper bought 19,450 DG Aug 50 Calls for $1.15 (7.0 times usual volume) when stock was trading $43.91

DECK is best know for their UGG Boots, but the company has made efforts to diversify their product line. According to DECK’s latest 10Q, UGG products still however make up 75% of revenues, but it is a step in the correct direction. The market is discounting these efforts; when compared to their peers. From a quantitative prospective, DECK shares trade at about 10.8x trailing EPS and more importantly 13.3x forward EPS…a discount to the market and its peers. DECK shares should move as a result of fundamental catalysts like consumer spending, valuation, performance metrics, eCommerce, material costs, and revenue trends.

DECK has captured the interest of the Wall Street short seller. Over 40% of the available shares have been sold short. This is indeed a risk to the story. There is potential for a short squeeze, but there is also potential for something that the shorts see that longs don’t. It seems as though the DECK story may break up or down in a major way because of the short interest.

salerno.mark.a@gmail.com