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February 14, 2013  Thu 4:14 AM CT

COH: SEE CHART GET CHAIN FIND STRATEGIES
Coach is down about 20 percent since it reported disappointing quarterly results last month, and one trader is positioning for another leg lower.

optionMONSTER's detected the purchase of 3,271 May 44 puts for $1.30 at the same second yesterday afternoon. Open interest in the strike was just 109 contracts before the session began, so this is clearly a new position.

The puts, which lock in the price where traders can sell shares, weren't tied to any stock activity identified by our systems yesterday. The options could have been bought as a straight bearish bet that COH will drop roughly 7 percent or more by expiration in mid-May. (See our Education section)

COH fell 0.49 percent yesterday to close at $48.77, not far from its 52-week low of $48.24 reached on Aug. 7. The upscale accessories retailer gapped down from above $60 after missing earnings and revenue forecasts on Jan. 23 and continued to slide before settling into an extremely tight range this month.

Total puts at all COH strikes outpaced calls by more than 2 to 1 yesterday.
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