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January 11, 2013  Fri 2:45 AM CT

TIF: SEE CHART GET CHAIN FIND STRATEGIES
Tiffany fell sharply after reporting lackluster holiday-sales numbers yesterday morning, but one trader is betting that recent support levels will hold through the summer.
                                                                                
optionMONSTER's tracking systems show that 2,500 August 55 puts were sold in a single print for $3.20. Open interest in the strike was just 70 contracts before yesterday's trading began, so this is clearly a new position.

TIF closed yesterday at $60.40, down 4.52 percent but well off the session low of $58.65 reached a few minutes after the open. The stock had closed the previous session at $63.26, its highest level since late November, just before shares gapped lower on the company's last earnings report. Shares of the jewelry icon bounced off support at the $56 level at the end of December.

Yesterday's put seller is looking for TIF to close above $55 at expiration in mid-August. If the stock is below that strike price, the trader will face the obligation to buy shares at an effective price of $51.80 when the credit from the put sale is included. (See our Education section)

Total option volume in the name was 4.5 times its daily average in the last month.
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