Trade sees dramatic move in Tiffany
David Russell | email@example.com
optionMONSTER's monitoring systems detected the purchase of 3,000 August 50 puts for $1.57 and 3,000 August 60 calls for $1.09. Volume was above open interest in each strike, indicating that these are new positions.
This straddle trade cost $2.66 to open and is designed to profit from the jewelry icon making a sudden move to the upside or downside. (See our Education section)
TIF is up 0.57 percent to $54.63 in early afternoon trading but has fallen about 20 percent since the beginning of May. Its last earnings report missed expectations as management cut guidance after economic jitters gave shoppers cold feet about high-cost purchases. Another jeweler, Signet, reported similarly weak results the same day.
Tiffany's shares are now attempting to consolidate above the $50-55 area where it peaked in 2007 and 2010, which could be leading some chart watchers to expect a rebound. They could also be expecting a dramatic decline if support doesn't hold.