This morning, Fossil reported third-quarter net income of $30.5 million, or 43 cents per share, marking a 41% increase from the firm's year-ago results of $21.5 million, or 31 cents per share. The results included a 3 cents-per-share charge stemming from Fossil's stock-options review, but still easily exceeded analysts' forecast of 34 cents per share. Net sales for the 3-month period jumped nearly 20% to $358.6 million.

Fossil also approved the repurchase of 2 million shares of its common stock, and issued a fourth-quarter earnings forecast of 67 cents per share.

After closing just fractionally higher yesterday, the shares of Fossil are up more than 12% in pre-market trading. The stock is currently perched on support from its 20-week moving average, and could benefit significantly from an unwinding of investor pessimism in today's session. Fossil's Schaeffer's put/call open interest ratio checks in at 1.90, an annual peak for the ratio, and more than 10% of the shares' available float has been sold short.