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September 19, 2012  Wed 12:18 PM CT

TJX: SEE CHART GET CHAIN FIND STRATEGIES
TJX has been moving higher for a long time, and a huge trade sees that uptrend continuing.

The discount fashion retailer posted an all-time closing high of $46.64 at the end of August but is down 0.17 percent today at $45.26. TJX appears to be heading for the first close below its 50-day moving average since the lows of October 2011, when shares were below $27. But the longer-term uptrend has seen it climb from $10 back in March 2009.

Overall option volume in the name tops 52,000 contracts, compared to daily average of 2,600. Fewer than 500 options are calls, and almost all of the activity is in one trade, according to optionMONSTER's systems.

A trader bought 25,818 September 45 puts for $0.37 against open interest of more than 26,000 contracts. At the same time he or she sold 25,818 October 45 puts for the bid price of $1.10 with volume that was about 8 times the previous open interest.

The activity is rolling a short-put position out a month roll as the September options face expiration at the end of this week. The trader apparently believes that TJX will hold up above $45 in that time, and he or she is willing to buy the stock if it does not. (See our Education section)
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So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

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