Options Trading News

Coach has gapped down to 10-month lows after reporting earnings this morning, but one trader sees an end fo apparently sees an end to the slide.

COH is down 16.6 percent in midday trading to $50.55 after disappointing earnings. Shares has trended down from the high of $79.70 in late March to a 2012 low below $55 two weeks ago. The high-end accessories retailer bounced from there but then collapsed this morning.

More than 61,000 COH options have already changed hands today, 10 times the full-session  average in the last month. A trader sold 20,000 August 52.50 now-in-the-money puts in a single print for the bid price of $2.80 against open interest of 13,217 contracts, according to optionMONSTER's systems.

The put seller is looking for COH to rebound in the next couple of weeks. The trader may be looking to buy shares on this pullback at an effective price of $49.70 if the stock remains below the $52.50 strike at expiration. (See our Education section)