Traders apparently believe that any losses in Aeropostale will be limited through early next year.
optionMONSTER's tracking systems detected the sale of 5,000 January 11 puts this morning for about $0.48. These are new positions, as there was no open interest in the strike before the trades appeared.
The put sellers are looking for ARO to stay above $11 through mid-January. If the stock falls below that strike price, the traders will be on the hook to buy shares at that level. (See our Education section)
ARO is down 6.29 percent to $14.01 today. The fashion retailer gapped down from above $16 after its last earnings report in late May and have been trading mostly sideways since.
The company is scheduled to release second-quarter results on Aug. 22 after the close.
Aeropostale has seen 7,000 contracts trade in all today, more than 5 times its daily average for the last month.
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