Trader thinks Tiffany is losing luster
Chris McKhann | [email protected]
More than 10,000 May 65 calls have traded so far today, led by a big print of 7,386 that was sold for $2.90, according to optionMONSTER systems. The volume was well above the strike's open interest of 2,747 at the beginning of the day, so this is clearly a new position.
This call selling appears to be a straightforward bet that TIF will close below the $65 strike price at expiration in mid-May. It is quite likely that the options were sold against long shares as a covered call strategy.
TIF is up 1.05 percent to $61.74 today. The jewelry icon bounced sharply off support at $56 last week and this morning closed the gap that was opened in late November after its earnings report.