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January 30, 2013  Wed 2:14 AM CT

UA: SEE CHART GET CHAIN FIND STRATEGIES
One big trader expects another bad earnings report from Under Armour tomorrow morning.

optionMONSTER's Depth Charge tracking system yesterday showed the purchase of 3,000 February 45 puts for $1.14 and the sale of an equal number of February 42.50 puts for $0.55. Volume exceeded the previous open interest at each strike, indicating that are new positions.

The trade cost $0.59 and will earn a maximum profit of 324 percent if the athletic-apparel company closes at or below $42.50 on expiration. It's known as a bearish put spread because it leverages a move between two prices. (See our Education section)

UA rose 0.83 percent to $48.31 yesterday but has lost about one-fifth of its value since mid-September. Shares fell in October after revenue missed expectations, so yesterday's bearish trader is probably looking for another weak set of numbers.

Overall option volume was almost triple the daily average yesterday, with puts accounting for almost two-thirds of the total.
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