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Ralph Lauren is facing nervous trade

David Russell (david.russell@optionmonster.com)

Ralph Lauren is trying to climb, but one investor is worried about a pullback.

optionMONSTER's Depth Charge tracking system detected a bearish four-way strategy in the clothing retailer. Some 1,000 March 160 puts were bought for $5.75, while equal-sized blocks were sold in the March 145 puts for $1.49, the March 150s for $2.24, and the March 180 calls for $1.22. There was barely any open interest at any of these strikes, indicating that new positions are being initiated.

The investor probably owns RL shares and is using the strategy as a hedge . It cost $0.80 and will protect him or her against a drop from $160 to $150. Below $145, they will be forced to buy more shares, which they might not mind doing if they already like the name. They must also sell their stock for $180 if it goes above that level, but they might be acceptable as well because it's near last year's all-time peak. (See our Education section)

RL is down 2.38 percent to $162.51 in morning trading. It's been drifting in a range following a big rally between 2009 and 2012. Earnings have remained strong, and today's apparently protective trade appears before the next report on the morning of Wednesday, Feb. 6.

Total option volume is quadruple the daily average so far in the session, according to the Depth Charge.

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