Saks (SKS, news, chart) is seeing ten times normal trading volume on ratio spread trading. The stock is down 40 cents to $10.87 and one player in the options market appears to be making a substantial bet that the decline will continue over the next several months. Around 10:30 a.m. Eastern time, an order for 5,000 SKS February 10 puts traded offerside for $1.40 a contract on the PHLX. Meanwhile, 10,000 of the February 7.5 puts traded bidside for 40 cents. Sources on the exchange inform us the trade was part of a 1×2 ratio spread for 60 cents (per 1 x 2). If so, the strategist is buying the 10s and selling two times as many 7.5s. The trade has a very bearish profile and one that yields its best profits ($1.90) if SKS settles at $7.50 at February options expiraiton. The profit zone (at expiration) is between $5.60 and $9.40, with substantial losses possible if the stock falls below the profit range.