Market News

November 14, 2012  Wed 2:14 AM CT

Shares of Michael Kors bounced off support yesterday, and one trader is betting that potential downside will be limited.

KORS was up 0.85 percent, finishing the day at $51.05. The luxury apparel retailer rebounded from support again at $50 today, a level that has held since mid-August. It climbed from $40 that month and hit a high of $58.62 intraday on Nov. 2.

optionMONSTER's systems detected the sale of 5,000 December 45 puts in a single print for $0.85. Open interest in the strike was only 908 contracts at the beginning of the session, so this is a new position.

The put selling is a bet that KORS will remain above $45 through the end of the year. The trader is willing to buy the stock if it falls below that strike price, a level last seen when shares gapped up through though it on Aug. 14. (See our Education section)

KORS saw 47,745 options trade overall yesterday, 26,000 of which were puts. That compares to a daily average of 6,200.
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