At $1.1 billion market-cap, Aeropostale operates the mall-based casual clothing and accessories retail stores. The company has seen high
growth relative to its peers with expected sales up 4.3% since 2012. ARO’s operating margin showed a significant change of 16.11% compared
to the sector average of 10.92%.
Alongside the emergence of new international stores in Middle East and Singapore in 2012, the company also has prospects to break into newer
markets. ARO’s strategies to alleviate from the rising costs of production show strong signs of higher returns for upcoming quarters; making it a viable stock for the retail investor.
The Trade: Buying the ARO May 14 Calls for $.40
Risk: $40 per 1 lot
Reward: Unlimited
B/E: $14.40
Greeks of the Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long
—
Andrew Keene
President/Founder
Andrew@KeeneOnTheMarket.com