A large trader apparently believes that the steep slide in Abercrombie & Fitch is ending.
More than 13,000 ANF options have traded this morning, already double its daily average for the last month. optionMONSTER systems show that much of that action is in the November 31 puts, where a trader sold 9,798 contracts for the bid price of $0.69. The volume is almost twice the previous open interest, so it is clearly a new position.
The put seller is looking for ANF to hold above $31 through expiration in five weeks. The trader is also taking on the risk of having to buy shares in the apparel retailer if they are below that strike price. (See our Education section)
ANF is down 2.4 percent to $33.32. It was above $50 in mid-August before gapping down on the last earnings.
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