hhgregg, Inc (HGG) is a consumer electronic retailer operating 208 stores in states across the country. The company’s is currently trading around $8.45 in a 52 week range of $7.23-$20.75. The has underperformed the market over the past year with shares down 13% in the past 12 months. Options action in today’s trading session would however suggest that traders believe the will rally through April expiration. Early in the session a trader sold 3,000 HGG Apr 6 puts to buy 3,000 Apr 9 calls for a net debit of $0.55. This risk reversal carries a high level of risk and suggests that this trader’s level of conviction is relatively high. This block also represents over 3 times the average daily option in HGG. Although the is trading below the it has rallied hard off of its 52 week lows in over the past week. We believe that order flow this strong and the strength in very recent price action is justification for a long position in HGG.