New option trade on Hanesbrands

Hanesbrands (HBI) has a 52 week trading range from $23,25 to $34.80, and recently hit the low on February 8th as the rest of the market sold off at the same time. The stock has recovered and gained over 20% in the past month doubling the gain on the S&P in the same time period, and we believe that this stock has more room to run if the rally continues. Option premiums on HBI are low and we can pickup near the money calls for relatively cheap and have a strong risk to reward profile.

We are buying the April $30 Calls on HBI for $0.90. This is going to be a quick short term trade and we don't anticipate holding this for more than 1-2 weeks at most. If the market pulls back hard and we see a steep sell off across industries we will close this position.