Market News

December 13, 2012  Thu 2:45 AM CT

Shares of Ann have been trending lower for the last three months, and one trader is positioning for more downside in the women's apparel retailer in the near term.

optionMONSTER's tracking systems detected the purchase of 2,500 December 33 puts for $0.75 and $0.80 in less than 3 minutes yesterday. The volume was well above the strike's open interest of 941 contracts at the beginning of the day, so this was fresh buying.

ANN rose 1.95 percent yesterday to close at $32.87 after Cowen reaffirmed its "outperform" rating on the stock. Shares gapped up from the $28 level on strong earnings results and guidance in mid-August but have been stair-stepping lower since hitting a 52-week highs just shy of $40 a month later.

The options were not tied to any stock trading identified by our systems yesterday, though they could have been bought to hedge a long position established earlier. The put buyer could also be making a straight bearish bet that ANN will fall about 2 percent by expiration at the end of next week. (See our Education section)

Overall option volume in the name was nearly double its daily average in the last month. Puts outnumbered calls by roughly 2.5 to 1, a reflection of the session's bearish sentiment.
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