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July 9, 2013  Tue 4:14 AM CT

LTD: SEE CHART GET CHAIN FIND STRATEGIES
Bears are shopping at L Brands before the retail company reports same-store sales on Thursday morning.

optionMONSTER's Depth Charge tracking program detected the purchase of 3,300 July 49 puts for $0.50 to $0.60. Volume was triple the previous open interest at the strike, indicating that new trades were initiated.

Puts lock in the price where shares can be sold, which gives them a potentially strong inverse relationship with the stock. Investors buy them to speculate on drops or to protect long positions against declines. (See our Education section)

LTD rose 1.41 percent to $50.37 yesterday. It gained more than 900 percent between March 2009 and May 2012 but has been shuffling in a range since. Formerly known as Limited Brands, the company's labels include Victoria's Secret and Bath & Body Works.

Same-store sales growth missed expectations in the last two months, and yesterday's option activity suggests that at least one big investor is worried about another weak number later this week.

Overall option volume was 15 times greater than average in the session, according to the Depth Charge. Puts accounted for a bearish 92 percent of the total.
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