Trader bets on end to Macy's slide


Macy's has been falling for months, but one trader is predicting an end to the bloodletting.

optionMONSTER systems detected the sale of 3,000 November 50 puts for $2.04 this morning, below the listed bid price on a wide bid/ask spread. This is clearly a new position, as the volume was more than 10 times the previous open interest in that strike.

The put seller is looking for M to stay above $50 through expiration in mid-November. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)

M is down 0.22 percent to $54.98 today, its lowest level since February. The department-store operator reached an all-time high of $61.26 a month ago and was above $58 last week.

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