Shares of Gap, Inc. (GAP) are soaring 8.40% in Tuesday's trading session, catching the attention of investors amid a surge in bullish options activity. The significant uptick in the stock price suggests that market participants are optimistic about the clothing retailer's near-term prospects.

Options traders appear to be positioning for potential upside in Gap's stock. According to market data, there has been notably high call option volume, with 9,577 calls trading - approximately 1.6 times the expected level. This increased options activity has pushed the implied volatility up by over 3 points to 43.54%, indicating heightened market expectations for future stock movement.

The concentration of activity in the January 2026 call options suggests that traders are betting on continued upward momentum for Gap over the coming months. While the exact reasons behind this bullish sentiment are not explicitly stated, it could be related to anticipation of strong holiday sales, positive company developments, or improving retail sector outlook. Investors will be watching closely to see if Gap can maintain this momentum and deliver on the optimistic expectations reflected in today's options market activity.