Options Trading News

December 28, 2012  Fri 11:48 AM CT

Fifth & Pacific has fallen with the rest of the retail sector in recent days, and one trader is positioning for more potential downside

optionMONSTER's Depth Charge system shows that 3,100 January 11 puts were bought for $0.25 in about 2 minutes today, including a block of 2,168. The volume was well above the strike's open interest of 2,096 contracts at the beginning of the day, indicating that this is a new position.

FNP is off 0.24 percent at $12.25 in early afternoon trading, continuing to decline with other retailers amid concerns about the holiday-shopping season. The apparel and accessory company, which used to be known as Liz Claiborne, bounced at support near $10 in early October and briefly pierced the $13 level last week.

Today's put buying was not tied to any stock trades identified by our systems, but it could be a protective hedge on a long position established earlier. The options could also be making a straight bearish bet that FNP will fall more than 12.5 percent by their expiration in three weeks. (See our Education section)

Trading in the January 11 puts has been the only option activity so far today in FNP. That volume is 5 times the name's daily average of just 616 in the last month. 
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